Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]

Stock-Based Compensation

Stock Based Compensation:

The following table presents a summary of restricted stock unit activity during the period:

	Shares		Weighted Average Grant Price
Balance, January 1, 2013	385,513		$	19.16
Granted	11,526		21.33
Vested	(70,824	)	19.54
Forfeited	(3,097	)	18.36
Outstanding, March 31, 2013	323,118		$	19.16

The following table presents a summary of stock option activity during the period:

	Shares		Weighted Average Exercise Price
Balance, January 1, 2013	12,399		$	1,433.63
Granted	141,044		21.47
Exercised	0		0.00
Expired	(1,913	)	2,189.22
Cancelled	(68	)	1,589.94
Outstanding, March 31, 2013	151,462		$	108.99
Exercisable, March 31, 2013	10,418		$	1,293.86

The Black-Scholes option-pricing model was used in estimating the fair value of option grants. The weighted average assumptions used during the period were:

	Three Months Ended March 31, 2013
Expected volatility	40	%
Expected term (in years)	10
Expected dividend yield	3	%
Risk free interest rate	1.97	%

The following table presents the weighted average remaining contractual life and the aggregate intrinsic value for stock options as of the dates indicated:

	Stock Options
	Outstanding			Exercisable
	Weighted Average Life	Intrinsic Value		Weighted Average Life	Intrinsic Value
	(dollars in thousands)
March 31, 2013	9.2 years	$	31	1.2 years	$	0
December 31, 2012	1.3 years	0		1.2 years	0

As of March 31, 2013, a total of 5,242,895 shares remained available for grant under Sterling’s 2007 and 2010 Long-Term Incentive Plans. The stock options outstanding under these plans have terms of six and 10 years. Stock based compensation expense recognized during the periods presented was as follows:

	Three Months Ended March 31,
	2013		2012
	(in thousands)
Stock options	$	104	$	24
Restricted stock	991		1,002
Total	$	1,095	$	1,026

As of March 31, 2013, unrecognized equity compensation expense totaled $5.5 million as the underlying outstanding awards had not yet been earned. This amount will be recognized over a weighted average period of 2.0 years.