Stock-Based Compensation

9 Months Ended

Sep. 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	245,970		22.05
Vested	(96,077	)	19.50
Forfeited	(8,473	)	19.15
Outstanding, September 30, 2013	526,933		$	20.45

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	245,847		21.69
Exercised	0		0.00
Expired	(5,524	)	1,833.61
Cancelled	(96	)	1,337.16
Outstanding, September 30, 2013	252,626		$	50.87
Exercisable, September 30, 2013	42,040		$	196.85

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:

	Nine Months Ended September 30, 2013
Expected volatility	40	%
Expected term (in years)	8.4
Expected dividend yield	3.28	%
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)
September 30, 2013	9.2 years	$	1,711	8.0 years	$	253
December 31, 2012	1.3 years	0		1.2 years	0

As of September 30, 2013, a total of 4,912,174 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 September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	(in thousands)
Stock options	$	196	$	6	$	491	$	37
Restricted stock	1,141		907		3,167		2,719
Total	$	1,337	$	913	$	3,658	$	2,756

As of September 30, 2013, unrecognized equity compensation expense totaled $8.6 million as the underlying outstanding awards had not yet been earned. This amount will be recognized over a weighted average period of 2.6 years.