NOTE 19.STOCK-BASED COMPENSATION PLANS

The 2013 Equity Incentive Plan (the “2013 Plan”) permits the granting of a combination of Restricted Stock awards and incentive and non-qualified stock options (“Stock Options”) to employees and directors. A total of 1.03 million shares was authorized under the Plan. Awards may be granted as either Restricted Stock or Stock Options provided that any shares that are granted as Restricted Stock are counted against the share limit set forth as (1) three for every one share of Restricted Stock granted and (2) one for every one share of Stock Option granted. As of year-end 2014, the Company had the ability to grant approximately 961 thousand shares under this plan.

The 2011 Equity Incentive Plan (the “2011 Plan”) permits the granting of a combination of Restricted Stock awards and incentive and non-qualified stock options to employees and directors. A total of 1.4 million shares was authorized under the Plan. Awards may be granted as either Restricted Stock or Stock Options provided that any shares that are granted as Restricted Stock are counted against the share limit set forth as (1) three for every one share of Restricted Stock granted and (2) one for every one share of Stock Option granted. As of year-end 2014, the Company had the ability to grant approximately 7 thousand shares under this plan.

A summary of activity in the Company’s stock compensation plans is shown below:

	Non-vested Stock Awards Outstanding				Stock Options Outstanding
			Weighted-				Weighted-
			Average				Average
	Number of		Grant Date		Number of		Exercise
(Shares in thousands)	Shares		Fair Value		Shares		Price
Balance, December 31, 2013	334		$	23.26	442		$	20.41
Granted	187		24.60		—		—
Stock options exercised	—		—		(90	)	11.77
Stock awards vested	(88	)	22.86		—		—
Forfeited	(9	)	23.46		—		—
Expired	—		—		(70	)	37.22
Balance, December 31, 2014	424		$	24.33	282		$	20.42
Exercisable options, December 31, 2014					282		$	20.72

Stock Awards

The total compensation cost for stock awards recognized as expense was $3.8 million, $2.1 million, and $2.0 million, in the years 2014, 2013, and 2012, respectively. The total recognized tax benefit associated with this compensation cost was $1.5 million, $0.9 million, and $0.8 million, respectively.

The weighted average fair value of stock awards granted was $24.60, $24.49, and $23.76 in 2014, 2013, and 2012, respectively. Stock awards vest over periods up to five years and are valued at the closing price of the stock on the grant date.

The total fair value of stock awards vested during 2014, 2013, and 2012 was $2.0 million, $1.9 million, and $1.4 million respectively. The unrecognized stock-based compensation expense related to unvested stock awards was $6.1 million as of year-end 2014. This amount is expected to be recognized over a weighted average period of two years.

Option Awards

Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant, and vest over periods up to five years. The options grant the holder the right to acquire a share of the Company’s common stock for each option held, and have a contractual life of ten years. As of year-end 2014, the weighted average remaining contractual term for options outstanding is four years.

The Company generally issues shares from treasury stock as options are exercised. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The expected dividend yield and expected term are based on management estimates. The expected volatility is based on historical volatility. The risk-free interest rates for the expected term are based on the U.S. Treasury yield curve in effect at the time of the grant. The Company acquired options in the Beacon transaction in 2012 but did not grant additional options in 2014, 2013, or 2012.

The total intrinsic value of options exercised was $1.2 million, $2.9 million, and $2.7 million for the years 2014, 2013, and 2012, respectively. The expense pertaining to options vesting in the years 2014, 2013, and 2012 was $41 thousand, $860 thousand, and $240 thousand, respectively. The total recognized tax benefit associated with stock option expense for the years 2014, 2013 and 2012 were $16 thousand, $347 thousand, and $97 thousand, respectively. There was no unrecognized stock-based compensation expense related to unvested stock options as of year-end 2014. The unrecognized stock-based compensation expense related to unvested stock options was $41 thousand as of year-end 2013.