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Stockholders' Equity and Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2016

Changes in stockholders’ equity for the nine months ended September 30, 2016 consisted of:



	(Dollars in thousands)
Balance at January 1, 2016	$	333,553
Net income for the nine months ended September 30, 2016	10,953
Cash dividends declared	(7,893		)
Amortization of stock based compensation	2,067
Common stock repurchase program	(6,214		)
Other	(12		)
Balance at September 30, 2016	$	332,454

Activities Under Equity Plan

For the nine months ended September 30, 2016 the initial offering period was still open and employees had not yet purchased any common stock. The following table summarizes the activities under the ESPP from January 1, 2016 through September 30, 2016:



	Activity
Total ESPP equity securities available at January 1, 2016	—
Plus: Registration of 2016 ESPP	250,000
Less: 2016 ESPP common stock purchased by eligible employees, net	—
Total 2016 ESPP securities available at September 30, 2016	250,000

The following table summarizes the activities under the 2012 Equity Plan from January 1, 2016 through September 30, 2016:



	Activity
Total equity securities available at January 1, 2016	1,483,235
Less: 2015 LTIP RSU's awarded to eligible employees, net of forfeitures	213,955
Less: Restricted shares of common stock ("restricted stock") awarded to non-executive members of the Board of Directors	17,615
Total equity securities available at September 30, 2016	1,251,665

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 nine months ended September 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	234,711		16.83
Vested	—		—
Forfeited	(20,756	)	17.05
Non-vested RSUs at September 30, 2016	456,423		$	17.10	$	4,843	21

Stock Option Valuation Assumptions

The following assumptions were used for each respective period for employee stock-based compensation related to the 2016 ESPP:



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2016			2015	2016			2015
Expected term (in years)	2.00			—	2.00			—
Volatility	7.89		%	—	7.89		%	—
Risk-free interest rate	0.34% - 0.78%			—	0.34% - 0.78%			—
Dividend payment	$	0.125		—	$	0.125		$	—

Schedule of Stock Based Compensation Expense for Awards Under Equity Plans

The following table reflects the items for stock based compensation expense on the condensed consolidated statements of income for the periods stated:



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Operating Expense Category	2016		2015		2016		2015
	(Dollars in thousands)
Cost of revenue (LTIP)	$	57	$	33	$	164	$	101
Service, rental and maintenance (LTIP)	61		29		177		86
Selling and marketing (LTIP)	75		16		198		118
General and administrative (LTIP)	391		223		1,198		914
General and administrative (ESPP)	9		—		9		—
General and administrative (Board of Directors Restricted Stock)	107		93		321		278
Total stock based compensation expense	$	700	$	394	$	2,067	$	1,497

Cash Dividends Declared

The following table details our cash dividend payments made in 2016. Cash dividends paid as disclosed in the condensed consolidated statements of cash flows for the nine months ended September 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
July 27	August 16	September 9	0.125		2,568
	Total		$	0.375	$	7,718

(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 nine months ended September 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
July 1 through July 31, 2016	—	—		—	4,029
August 1 through August 31, 2016	3,800	16.44		3,800	3,967
September 1 through September 30, 2016	10,084	16.46		10,084	3,801
Total	371,536	$	16.68	371,536

(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 September 30,				For the Nine Months Ended September 30,
	2016		2015		2016		2015
	(Dollars in thousands, except share and per share amounts)
Net income	$	4,058	$	4,220	$	10,953	$	11,515
Weighted average shares of common stock outstanding	20,517,419		21,301,311		20,581,586		21,623,612
Dilutive effect of restricted stock, RSUs and the ESPP	14,926		14,374		14,464		15,361
Weighted average shares of common stock and common stock equivalents	20,532,345		21,315,685		20,596,050		21,638,973
Net income per common share
Basic	$	0.20	$	0.20	$	0.53	$	0.53
Diluted	$	0.20	$	0.20	$	0.53	$	0.53