Stock-Based Compensation

As of March 31, 2016, the Company had two compensation plans, the 2010 Equity Incentive Plan ("the "2010 Plan") and the 2013 Omnibus Compensation Plan (the “2013 Plan”) under which shares of its common stock are issuable in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, stock bonus awards and other incentive awards. The 2010 Plan was replaced by the 2013 Plan and no further awards may be made pursuant to the 2010 Plan.

The 2013 Plan was effective May 22, 2013 and expires on May 22, 2023, the tenth anniversary of the effective date. The maximum number of shares of common stock of the Company that may be optioned or awarded under this plan is 2,639,000 shares. Awards under this plan may be made to any person selected by the Compensation Committee.

The following table summarizes the components and classification of stock-based compensation expense for the three months ended March 31, 2016 and 2015:



(Dollars in thousands)	Three Months Ended
	March 31, 2016		March 31, 2015
Stock options	$	9	$	184
Restricted stock	308		100
Total stock-based compensation expense	$	317	$	284

The tax benefit related to stock-based compensation expense arising from restricted stock awards and non-qualified stock options was $0.1 million for the three months ended March 31, 2016 and 2015, respectively.

Stock Options

Under the 2010 Plan and 2013 Plan, the exercise price for common stock must equal at least 100% of the fair market value of the stock on the day an option is granted. The exercise price under an incentive stock option granted to a person owning stock representing more than 10% of the common stock must equal at least 110% of the fair market value at the date of grant, and such option is not exercisable after five years from the date the incentive stock option was granted. The Board of Directors may, at its discretion, provide that an option not be exercised in whole or in part for any period or periods of time as specified in the option agreements. Stock options have an expiration of ten years from the date it is granted. Under these plans, 10,000 options were exercised and 30,207 stock options were granted during the three months ended March 31, 2016.

ASC 718 requires the recognition of stock-based compensation expense for the number of awards that are ultimately expected to vest. During the three months ended March 31, 2016 and 2015, stock based compensation expense was recorded based upon assumptions that the Company would experience no forfeitures. This assumption of forfeitures will be reassessed in subsequent periods based on historical forfeiture rates and may change based on new facts and circumstances. Any changes in assumptions will be accounted for prospectively in the period of change.

A summary of the stock option activity for the three months ended March 31, 2016 and 2015 is as follows:



	Three Months Ended
	March 31, 2016				March 31, 2015
(Shares in thousands)	Shares		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
Balance, January 1,	3,075		$	20.12	3,111		$	20.26
Granted	30		30.54		—		—
Exercised	(10	)	18.00		—		—
Canceled, expired or forfeited	—		—		(1	)	589.41
Balance, March 31,	3,095		$	20.23	3,110		$	20.19

At March 31, 2016, the weighted average remaining contractual life for outstanding stock options was approximately 4.41 years and the aggregate intrinsic values was $33.6 million for stock options outstanding and exercisable.

The intrinsic value for stock options is calculated as the difference between the exercise price of the underlying awards and the market price of the Company’s common stock as of the reporting date.

Options outstanding at March 31, 2016 were as follows:



(Shares in thousands)	Outstanding Options				Exercisable Options
Range of Exercise Prices	Shares	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price Per Share		Shares	Weighted Average Exercise Price Per Share
$18.00	192	7.14 years	$	18.00	192	$	18.00
$20.00	2,864	4.18 years	20.00		2,864	20.00
$28.44 - $2,026.00	39	8.09 years	47.86		9	104.61
$18.00 - $2,026.00	3,095	4.41 years	$	20.23	3,065	$	20.13

Restricted Stock

Restricted stock provides the grantee with voting, dividend and anti-dilution rights equivalent to common shareholders, but is restricted from transfer until vested, at which time all restrictions are removed. The restricted stock vests ratably over a three-year period subject to continued employment with the company. The value of the restricted stock is being amortized on a straight-line basis over the implied service periods. There were 185,147 restricted stock awards granted under the 2013 Plan during the three months ended March 31, 2016.

The following table summarizes unvested restricted stock activity for the three months ended March 31, 2016 and 2015:



	Three Months Ended
	March 31, 2016			March 31, 2015
(Shares in thousands)	Shares	Weighted Average Grant-Date Fair Value Per Share		Shares	Weighted Average Grant-Date Fair Value Per Share
Balance, January 1,	—	$	—	810	$	13.89
Granted	185	30.54		—	—
Vested or released	—	—		—	—
Canceled, expired or forfeited	—	—		—	—
Balance, March 31, 2016	185	$	30.54	810	$	13.89