Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We recognize compensation expense for stock-based compensation awards issued to employees that are expected to vest. Compensation cost is based on the fair value of awards as of the grant date.

The following table summarizes the pre-tax stock-based compensation expense included in reported net income (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Non-qualified stock options	$	113	$	125	$	367	$	370
Restricted stock units	292		189		886		568
Board of Directors stock grants	86		79		245		246
Total stock-based compensation	$	491	$	393	$	1,498	$	1,184

Pursuant to our 2011 Stock Incentive Plan (the “2011 Plan”), we may grant awards of non-qualified stock options, incentive stock options, restricted stock, stock units, performance shares, performance units and other incentives payable in cash or in shares of our common stock to officers, employees or members of the Board of Directors. As of September 30, 2014, we had non-qualified stock options and restricted stock units outstanding under these plans as discussed below.

Non-Qualified Stock Options

Summarized information for the Company’s non-qualified stock options is as follows:

	Number of		Weighted average		Weighted average remaining contractual	Aggregate intrinsic
Stock Options	options		exercise price		term	value
Outstanding at December 31, 2013	569,300		$	9.41
Granted	—		—
Exercised	(221,550	)	8.02
Forfeited	(3,000	)	15.25
Expired	—		—
Outstanding at September 30, 2014	344,750		$	10.25	1.85	$	6,368,000
Exercisable at September 30, 2014	176,450		$	9.84	1.74	$	3,332,000

Restricted Stock Units

In addition to stock options, we issue restricted stock units to key employees and members of the Board of Directors based on meeting certain service goals. The stock units vest to the recipients at various dates, up to five years, based on fulfilling service requirements. We recognize the value of the market price of the underlying stock on the date of grant as compensation expense over the requisite service period. Upon vesting, the stock units are settled in shares of our common stock. Summarized share information for our restricted stock units is as follows:

	Nine Months Ended September 30, 2014		Weighted average grant date fair value
	(In shares)		(In dollars)
Outstanding and unvested, beginning of period	244,031		$	22.17
Granted	6,615		24.20
Vested	(39,850	)	18.83
Forfeited	(2,361	)	17.75
Outstanding and unvested, end of period	208,435		$	22.92