Stockholders' Equity

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity — Our authorized capital stock consists of 75 million shares of common stock, par value $0.0001 per share, and 25 million shares of preferred stock, par value $0.0001 per share.

Changes in Stockholders’ Equity. Changes in stockholders’ equity for the nine months ended September 30, 2014 consisted of:

	(Dollars in thousands)
Balance at January 1, 2014	$	269,950
Net income for the nine months ended September 30, 2014	13,833
Cash dividends declared	(8,283		)
Amortization of stock based compensation	2,816
Other	(34		)
Balance at September 30, 2014	$	278,282

General. At September 30, 2014 and December 31, 2013, there were 21,675,735 and 21,652,341 shares of common stock outstanding, respectively, and no shares of preferred stock outstanding.

The following table summarizes the activities under the 2012 Equity Incentive Award Plan (the "2012 Equity Plan") from inception through September 30, 2014:

	Activity
Total equity securities available at May 16, 2012	2,194,986
Add: 2011 LTIP RSUs forfeited by eligible employees	209,382
Add: Restricted shares of common stock ("restricted stock") forfeited by non-executive member of the Board of Directors	3,189
Less: 2011 LTIP RSUs awarded to eligible employees	(557,484	)
Less: Common stock awarded to eligible employees	(5,820	)
Less: Restricted stock awarded to non-executive members of the Board of Directors	(47,855	)
Less: Short-Term Incentive Plan (“STIP”) common stock awarded to an eligible employee	(41,702	)
Total equity securities available at September 30, 2014	1,754,696

On July 8, 2014, our Board of Directors granted 5,820 shares of common stock to certain eligible employees under the 2012 Equity Plan. The grant date fair value was $0.1 million based upon the closing price per share of our common stock of $15.74.

The following table details activities with respect to outstanding RSUs under the 2011 LTIP for the three months ended September 30, 2014:

	Shares	Weighted- Average Grant Date Fair Value		Total Unrecognized Compensation Cost (net of estimated forfeitures) (In thousands)		Weighted-Average Period Over Which Cost is  Expected to be Recognized (In months)
Non-vested RSUs at July 1, 2014	559,689	$	12.41
Granted	—	—
Vested	—	—
Forfeited	—	—
Non-vested RSUs at September 30, 2014	559,689	$	12.41	$	930	3

The following table reflects the stock based compensation expense for the awards under the 2012 Equity Plan and predecessor equity plan:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Equity Awards	2014		2013		2014		2013
	(Dollars in thousands)
Common stock	$	85	$	—	$	85	$	—
2011 LTIP	930		906		2,486		2,040
Board of Directors Compensation	91		40		245		160
Total stock based compensation	$	1,106	$	946	$	2,816	$	2,200

The increase in 2011 LTIP stock based compensation expense for the nine months ended September 30, 2014 compared to the same period in 2013 was due to the issuance of additional RSUs in the third quarter of 2013. The increase in stock based compensation expense was offset by forfeitures in the second quarter of 2014, which decreased the outstanding RSUs to 559,689 on September 30, 2014 as compared to 642,582 RSUs on September 30, 2013. The increase in stock based compensation expense related to the Board of Directors for the nine months ended September 30, 2014 compared to the same period in 2013 reflects the compensation increase for Board of Director members effective in the third quarter of 2013.

Cash Dividends to Stockholders. The following table details our cash dividend payments made in 2014. Cash dividends paid as disclosed in the statements of cash flows for the nine months ended September 30, 2014 and 2013 included previously declared cash dividends on shares of vested restricted stock issued to our non-executive directors. Cash dividends on RSUs and restricted stock have been accrued and are paid when the applicable vesting conditions are met. Accrued cash dividends on forfeited restricted stock and RSUs are also forfeited.

Declaration Date	Record Date	Payment Date	Per Share Amount		Total  Payment(1)
					(Dollars in thousands)
March 5	March 18	March 28	$	0.125	$	2,707
April 30	May 22	June 25	0.125		2,707
July 30	August 19	September 10	0.125		2,707
	Total		$	0.375	$	8,121

⁽¹⁾  The total payment reflects the cash dividends paid in relation to common stock and vested restricted stock.

Future Cash Dividends to Stockholders. On October 29, 2014, our Board of Directors declared a regular quarterly cash dividend of $0.125 per share of common stock, with a record date of November 18, 2014, and a payment date of December 10, 2014. This cash dividend of approximately $2.7 million will be paid from available cash on hand.

Common Stock Repurchase Program. The Board of Directors on October 29, 2014 extended the common stock repurchase program through December 31, 2015. In extending the common stock repurchase plan, the Board of Directors also maintained the repurchase authority of $15.0 million as of January 1, 2015. In addition for 2015, the Board of Directors intends to return a total of $26.0 million to stockholders in the form of dividends and/or common stock repurchases.

Additional Paid-in Capital. For the nine months ended September 30, 2014, additional paid-in capital increased by $2.7 million to $130.0 million at September 30, 2014 from $127.3 million at December 31, 2013. The increase in the nine months ended September 30, 2014 was due primarily to recognition of stock based compensation.

Net Income per Common Share. Basic net income per common share is computed on the basis of the weighted average common shares outstanding. Diluted net income per common share is computed on the basis of the weighted average common shares outstanding plus the effect of all potentially dilutive common shares including outstanding restricted stock and RSUs, which are treated as contingently issuable shares, using the “treasury stock” method. The components of basic and diluted net income per common share were as follows for the periods stated:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014		2013		2014		2013
	(Dollars in thousands, except share and per share amounts)
Net income	$	4,652	$	5,762	$	13,833	$	19,515
Weighted average shares of common stock outstanding	21,651,347		21,629,289		21,643,951		21,653,692
Dilutive effect of restricted stock and RSUs	484,207		289,949		445,941		262,371
Weighted average shares of common stock and common stock equivalents	22,135,554		21,919,238		22,089,892		21,916,063
Net income per common share
Basic	$	0.21	$	0.27	$	0.64	$	0.90
Diluted	$	0.21	$	0.26	$	0.63	$	0.89