Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 12 — Stock-Based Compensation

Stock Option and Incentive Plan

The Company currently has outstanding stock options and restricted stock granted under the 2007 Stock Option and Incentive Plan (“2007 Plan”) and the 2012 Omnibus Incentive Plan (the “2012 Plan”). The 2007 Plan was terminated in 2012. Thus, there are no longer available shares for future grant under the 2007 Plan. Under the 2012 Plan, the aggregate number of shares of the Company’s common stock reserved and available for issuance is 5,000,000 of which only 4,000,000 shares may be issued upon the exercise of incentive stock options. With respect to the 2012 Plan at March 31, 2013, no incentive stock options have been granted, 45,400 shares of restricted stock are outstanding, and 4,954,600 shares are available for future grant.

Stock Options

Outstanding stock options granted under the 2007 Plan vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years.

A summary of the activity in the Company’s 2007 Plan for the three months ended March 31, 2013 and 2012 is as follows (dollars in thousands, except per share amounts):

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2012		280,000		$	2.91		4.9 years	$	5,007
Outstanding at March 31, 2013		280,000			2.91		4.7 years	$	6,816
Exercisable at March 31, 2013		260,000		$	2.65		4.4 years	$	6,397
Outstanding at December 31, 2011		620,000		$	2.97		5.7 years	$	3,122
Exercised		(217,003	)		3.33
Outstanding at March 31, 2012		402,997			2.78		5.5 years	$	3,997
Exercisable at March 31, 2012		369,797		$	2.50		5.2 years	$	3,772

The following table summarizes information about options exercised for the three months ended March 31, 2013 and 2012:

	Three Months Ended March 31,
	2013		2012
Options exercised		—		217,003
Total intrinsic value of exercised options		n/a	$	1,470,101
Tax benefits realized		n/a	$	437,000

During the three months ended March 31, 2012, a total of 217,003 options were exercised and net settled by surrender of 71,409 shares. No stock options vested during the three months ended March 31, 2013 and 2012. Compensation expense recognized for the three months ended March 31, 2013 and 2012 totaled approximately $4,700 and $53,000, respectively. At March 31, 2013, there was approximately $20,000 of unrecognized compensation expense related to nonvested stock options granted under the plan. The Company expects to recognize the remaining compensation expense over a weighted-average period of 12.6 months. Deferred tax benefits related to stock options for the three months ended March 31, 2013 and 2012 were immaterial. No stock options were granted during the three months ended March 31, 2013.

Restricted Stock Awards

During 2012, the Company granted restricted stock awards to certain executive officers and other employees in connection with their service to the Company. The terms of the Company’s restricted stock grants include both service and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only service-based conditions is based on the value of the Company’s common stock on the grant date.

Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2013 is as follows:

	Number of Restricted Stock Awards			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2012		246,320		$	14.54
Forfeited		(920	)
Nonvested at March 31, 2013		245,400		$	14.51

The Company recognized compensation expense of $384,700 for the three months ended March 31, 2013. At March 31, 2013, there was approximately $2.4 million of total unrecognized compensation expense related to nonvested restricted stock arrangements granted under the Company’s 2007 Plan and 2012 Plan. For the three months ended March 31, 2013, the Company recognized deferred tax benefits of approximately $148,000 related to restricted stock awards and realized tax benefits of approximately $22,000 related to cash dividends paid on restricted stock.

The Company expects to recognize the remaining compensation expense over a weighted-average period of 27 months. No restricted stock was granted during the three months ended March 31, 2013 and 2012. There were no shares of restricted stock issued or outstanding during the three months ended March 31, 2012.