Stock-Based Compensation

6 Months Ended

Jun. 30, 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	229,521		21.76
Vested	(96,077	)	19.50
Forfeited	(6,589	)	19.10
Outstanding, June 30, 2013	512,368		$	20.26

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	240,187		21.59
Exercised	0		0.00
Expired	(1,913	)	2,189.22
Cancelled	(96	)	1,337.16
Outstanding, June 30, 2013	250,577		$	74.41
Exercisable, June 30, 2013	45,651		$	311.41

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:

	Six Months Ended June 30, 2013
Expected volatility	40	%
Expected term (in years)	8.5
Expected dividend yield	3.29	%
Risk free interest rate	1.55	%

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)
June 30, 2013	9.3 years	$	526	7.6 years	$	81
December 31, 2012	1.3 years	0		1.2 years	0

As of June 30, 2013, a total of 4,932,399 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 June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(in thousands)
Stock options	$	191	$	7	$	295	$	31
Restricted stock	1,035		810		2,026		1,812
Total	$	1,226	$	817	$	2,321	$	1,843

As of June 30, 2013, unrecognized equity compensation expense totaled $9.5 million as the underlying outstanding awards had not yet been earned. This amount will be recognized over a weighted average period of 2.7 years.