Note 12 — Stock-Based Compensation

Incentive Plan

The Company currently has outstanding stock options and restricted stock granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan which are collectively called “the Incentive Plan.” Only the 2012 Plan is available for future grant. At March 31, 2014, there were 4,246,135 shares available for grant under the Incentive Plan.

Stock Options

Stock options granted and outstanding under the Incentive 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 stock option activity for the three months ended March 31, 2014 and 2013 is as follows:


	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value

Outstanding at January 1, 2014		280,000		$	2.91		3.9 years	$	14,166

Exercised		(50,000	)	$	2.50

Outstanding at March 31, 2014		230,000		$	3.00		3.8 years	$	7,683

Exercisable at March 31, 2014		220,000		$	2.85		3.6 years	$	7,382


Outstanding at January 1, 2013		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

The following table summarizes information about stock options exercised for the three months ended March 31, 2014 and 2013 (option amounts not in thousands):


	Three Months Ended March 31,
	2014		2013
Options exercised		50,000		—
Total intrinsic value of exercised options	$	1,970	$	—
Tax benefits realized	$	603	$	—

No stock options vested during the three months ended March 31, 2014 and 2013. Compensation expense recognized for the three months ended March 31, 2014 and 2013 totaled approximately $5 and $4, respectively, and is included in other operating expenses. At March 31, 2014 and 2013, there was approximately $1 and $20, respectively, of unrecognized compensation expense related to nonvested stock options granted under the plan. The Company recognized the remaining compensation expense in April 2014. Deferred tax benefits related to stock options for the three months ended March 31, 2014 and 2013 were immaterial. No stock options were granted during the three months ended March 31, 2014 and 2013.

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance 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 performance or service-based conditions is based on the market 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, 2014 and 2013 is as follows:


	Number of Restricted Stock Awards			Weighted Average Grant Date Fair Value

Nonvested at January 1, 2014		735,650		$	25.48
Granted		98,720		$	48.42
Vested		(21,825	)
Forfeited		(505	)

Nonvested at March 31, 2014		812,040		$	28.37


Nonvested at January 1, 2013		246,320		$	14.54
Forfeited		(920	)

Nonvested at March 31, 2013		245,400		$	14.51

The Company recognized compensation expense, which is included in other operating expenses, of $2,080 and $385, respectively, for the three months ended March 31, 2014 and 2013. At March 31, 2014 and 2013, there was approximately $16,440 and $2,401, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 27.4 months. For the three months ended March 31, 2014 and 2013, the Company recognized deferred tax benefits of $878 and $170, respectively, related to restricted stock awards. No restricted stock was granted during the three months ended March 31, 2013.