Stock-Based Compensation

3 Months Ended

Mar. 31, 2014

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(11)Stock-Based Compensation

Under the Company’s Incentive Plan, the Company’s Board of Directors may grant stock-based compensation awards to nonemployee directors, key employees, consultants and prospective employees under the terms described in the Incentive Plan. Stock-based compensation awards issuable under the Incentive Plan include the grant of options, restricted stock awards, restricted stock unit awards, performance stock awards, stock appreciation rights and other equity based awards. The Incentive Plan provides that eligible participants may be granted shares of Company common stock that are subject to forfeiture until the grantee vests in the stock award based on the established conditions, which may include service conditions, established performance measures or both.

Prior to the vesting of stock awards that are subject to a service vesting condition, each grantee has the rights of a stockholder with respect to voting the shares of stock represented by the award. The grantee is not entitled to dividend rights with respect to the shares of stock until vesting occurs. Prior to vesting of the stock awards with performance vesting conditions, each grantee has the rights of a stockholder with respect to voting of the shares of stock represented by the award. The recipient is generally not entitled to dividend rights with respect to unvested shares. Other than the stock awards with service and performance based vesting conditions, no other grants have been made under the Incentive Plan.

The Incentive Plan authorizes grants of stock-based compensation awards of up to a total of 1,700,000 shares of Company voting common stock, subject to adjustments upon the occurrence of certain events. As of March 31, 2014 and December 31, 2013, there were outstanding awards representing 745,406 and386,525 shares of unvested stock (net of forfeitures), with 526,624 and 931,384 shares remaining available for grant under the Incentive Plan, respectively.

Of the 745,406 shares represented by unvested awards at March 31, 2014, approximately 674,835 shares are expected to vest. At March 31, 2014, there were 326,560 shares of restricted stock outstanding that were subject to a performance condition. Management expects that 255,989 of these326,560 shares will vest and that the remaining shares will expire unvested. The performance shares that are expected to vest relate to awards granted to various key employees from February 2013 through March 2014. The vesting of these performance shares is contingent upon the meeting of certain return on asset performance measures. The performance-based shares awarded in 2012, 2013 and 2014 each include a “threshold” and “target” performance level, with vesting determined based on where actual performance falls in relation to the numeric range represented by these performance criteria. Management expects that the targeted performance goals will be met with respect to the performance-based shares awarded in 2013 and

2014 and does not expect to reach the threshold performance criteria for the performance awards granted in 2012, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed.

A summary of the status of unearned stock awards and the change during the period is presented in the table below:

	Shares		Weighted Average Fair Value on Award Date
Unearned at January 1, 2014	386,525	$	9.18
Awarded	404,761		13.37
Forfeited	-		-
Vested	(45,880)		8.03
Unearned at March 31, 2014	745,406	$	11.53

The Company recognized $459,000 and $337,000 in stock-based compensation expense for services rendered for the three months ended March 31, 2014 and March 31, 2013, respectively. The total income tax benefit recognized for share-based compensation arrangements was $174,000 and$128,000  for the three months ended March 31, 2014 and March 31, 2013, respectively. At March 31, 2014, compensation cost of $6,395,000 related to unvested awards not yet recognized is expected to be recognized over a weighted-average period of 2.6 years. The fair value of awards that vested in the three months ended March 31, 2014 was approximately $604,000.