STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

8.	Stock-Based Compensation

Equity award plans

The Company has five equity award plans, which are collectively referred to as the “Plan.” The current plan under which any future issuances of equity awards will be made is the 2012 BNC Financial Group, Inc. Stock Plan, or the “2012 Plan,” amended on June 26, 2013. All equity awards made under the 2012 Plan are made by means of an award agreement, which contains the specific terms and conditions of the grant. To date, all equity awards have been in the form of share options or restricted stock. At September 30, 2014, there were 448,885 shares reserved for future issuance under the 2012 Plan.

Share Options: The Company accounts for stock options based on the fair value at the date of grant over the vesting period of such awards on a straight line basis. For the nine months ended September 30, 2014 and 2013, the Company recorded expense related to options granted under the various plans of approximately $24 thousand and $62 thousand, respectively.

There were no options granted during the nine months ended September 30, 2014.

A summary of the status of outstanding stock options as of and for the nine months ended September 30, 2014 is presented below:


	Nine Months Ended
	September 30, 2014
				Weighted
	Number			Average
	of			Exercise
	Shares			Price

Options outstanding at beginning of period		208,568		$	16.67
Granted		-			-
Forfeited		(4,270	)		18.32
Exercised		(20,305	)		10.17
Expired		(480	)		10.00
Options outstanding at end of period		183,513			17.37
Options exercisable at end of period		172,152			17.51
Weighted-average fair value of options granted during the period					N/A

Intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date. The total intrinsic value of share options exercised during the nine months ended September 30, 2014 was $214 thousand.

Restricted Stock: Restricted stock provides grantees with rights to shares of common stock upon completion of a service period and certain performance goals. Shares of unvested restricted stock are considered participating securities. Restricted stock awards generally vest over one to five years.

The following table presents the activity for restricted stock for the nine months ended September 30, 2014:


	Nine Months Ended
	September 30, 2014
				Weighted
	Number			Average
	of			Grant Date
	Shares			Fair Value

Unvested at beginning of period		122,140		$	15.98
Granted		10,510			17.12
Vested		(6,456	)		14.66
Forfeited		(49,916	)		15.89
Unvested at end of period		76,278			16.31

The Company’s restricted stock expense for the nine months ended September 30, 2014 and 2013 was $141 thousand and $143 thousand, respectively.