Stockholders' Equity and Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2016

Changes in stockholders’ equity for the six months ended June 30, 2016 consisted of:



	(Dollars in thousands)
Balance at January 1, 2016	$	333,553
Net income for the six months ended June 30, 2016	6,895
Cash dividends declared	(5,267		)
Amortization of stock based compensation	1,368
Common stock repurchase program	(5,985		)
Other	(18		)
Balance at June 30, 2016	$	330,546

Activities Under Equity Plan

The following table summarizes the activities under the 2012 Equity Incentive Award Plan (the "2012 Equity Plan") from January 1, 2016 through June 30, 2016:



	Activity
Total equity securities available at January 1, 2016	1,483,235
Less: 2015 LTIP Restricted Stock Units ("RSUs") awarded to eligible employees, net	222,065
Less: Restricted shares of common stock ("restricted stock") awarded to non-executive members of the Board of Directors	12,010
Total equity securities available at June 30, 2016	1,249,160

Summary of Outstanding RSUs under 2011 LTIP

The following table details activities with respect to RSUs issued and outstanding under the 2015 LTIP for the six months ended June 30, 2016:



	Shares		Weighted- Average Grant Date Fair Value		Total Unrecognized Compensation Cost (Dollars in thousands)		Weighted-Average Period Over Which Cost is Expected to be Recognized (In months)
Non-vested RSUs at January 1, 2016	242,468		$	17.35
Granted	232,164		16.83
Vested	—		—
Forfeited	(10,099	)	17.02
Non-vested RSUs at June 30, 2016	464,533		$	17.09	$	5,376	24

Schedule of Stock Based Compensation Expense for Awards Under Equity Plans

Compensation expense associated with RSUs and restricted stock was recognized based on the fair value of the instruments, over the instruments’ vesting period. The following table reflects the statements of income line items for stock based compensation expense for the periods stated:



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
Operating Expense Category	2016		2015		2016		2015
	(Dollars in thousands)
Cost of revenue (LTIP)	$	58	$	34	$	107	$	67
Service, rental and maintenance (LTIP)	63		29		116		57
Selling and marketing (LTIP)	75		51		123		102
General and administrative (LTIP)	426		455		807		693
General and administrative (Board of Directors Restricted Stock)	108		93		215		185
Total stock based compensation expense	$	730	$	662	$	1,368	$	1,104

Cash Dividends Declared

The following table details our cash dividend payments made in 2016. Cash dividends paid as disclosed in the statements of cash flows for the six months ended June 30, 2016 and 2015 include previously declared cash dividends on shares of vested restricted stock issued to our non-executive directors and dividends related to vested RSUs issued to eligible employees. 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)
February 24	March 18	March 30	$	0.125	$	2,580
April 27	May 23	June 24	0.125		2,570
	Total		$	0.250	$	5,150

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

Class of Treasury Stock

The following table presents information with respect to purchases made by the Company during the six months ended June 30, 2016:



Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of the Publicly Announced Plans or Programs⁽¹⁾	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Plans or Programs⁽¹⁾
					(Dollars in thousands)
Beginning Balance					$	10,000
January 1 through January 31, 2016	152,198	$	16.53	152,198	7,484
February 1 through February 29, 2016	101,736	17.24		101,736	5,730
March 1 through March 31, 2016	37,927	16.44		37,927	5,107
April 1 through April 30, 2016	31,468	16.40		31,468	4,591
May 1 through May 31, 2016	34,323	16.37		34,323	4,029
June 1 through June 30, 2016	—	—		—	4,029
Total	357,652	$	16.69	357,652

(1) In October 2015, the Board of Directors extended the common stock repurchase program through December 31, 2016, and reset the repurchase authority to $10.0 million as of January 4, 2016.

Basic and Diluted Net Income Per Common Shares

The components of basic and diluted net income per common share were as follows for the periods stated:



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
	(Dollars in thousands, except share and per share amounts)
Net income	$	3,451	$	3,376	$	6,895	$	7,293
Weighted average shares of common stock outstanding	20,544,327		21,677,299		20,614,023		21,787,434
Dilutive effect of restricted stock and RSUs	160,879		58,530		217,717		56,157
Weighted average shares of common stock and common stock equivalents	20,705,206		21,735,829		20,831,740		21,843,591
Net income per common share
Basic	$	0.17	$	0.16	$	0.33	$	0.33
Diluted	$	0.17	$	0.16	$	0.33	$	0.33