Stock-Based Compensation

12 Months Ended

Dec. 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 periods:

	Shares		Weighted Average Grant Price
Balance, January 1, 2011	368,805		$	18.24
Granted	130,021		17.18
Vested	(163,680	)	18.50
Forfeited	(33,773	)	16.63
Outstanding, December 31, 2011	301,373		$	17.82
Balance, January 1, 2012	301,373		$	17.82
Granted	305,157		20.06
Vested	(142,727	)	19.44
Forfeited	(78,290	)	17.02
Outstanding, December 31, 2012	385,513		$	19.16
Balance, January 1, 2013	385,513		$	19.16
Granted	253,378		22.27
Vested	(171,339	)	18.14
Forfeited	(13,473	)	19.63
Outstanding, December 31, 2013	454,079		$	21.27

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

	Shares		Weighted Average Exercise Price
Balance, January 1, 2011	18,920		$	1,357.97
Granted	0		0.00
Exercised	0		0.00
Expired	(2,600	)	1,231.98
Forfeited	(520	)	903.92
Outstanding, December 31, 2011	15,800		$	1,393.65
Exercisable, December 31, 2011	14,011		$	1,507.87
Balance, January 1, 2012	15,800		$	1,393.65
Granted	0		0.00
Exercised	0		0.00
Expired	(1,211	)	1,362.40
Forfeited	(2,190	)	1,184.58
Outstanding, December 31, 2012	12,399		$	1,433.63
Exercisable, December 31, 2012	11,996		$	1,447.69
Balance, January 1, 2013	12,399		$	1,433.63
Granted	245,847		21.69
Exercised	0		0.00
Expired	(5,524	)	1,833.61
Forfeited	(96	)	1,337.16
Outstanding, December 31, 2013	252,626		$	50.87
Exercisable, December 31, 2013	77,301		$	116.85

During the year ended December 31, 2013, the fair value of options granted were $1.6 million. The Black-Scholes option-pricing model was used in estimating the fair value of option grants. The weighted average assumptions used for 2013 grants were:

	Year Ended December 31, 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)
December 31, 2013	9.0 years	$	3,046	8.4 years	$	889
December 31, 2012	1.3 years	0		1.2 years	0

As of December 31, 2013, a total of 4,936,148 shares remained available for grant under Sterling's 2007 and 2010 Long-Term Incentive Plans. Stock options outstanding have terms of six and 10 years. Stock based compensation expense recognized during the periods presented was as follows:

	Years Ended December 31,
	2013		2012		2011
	(in thousands)
Stock options	$	692	$	43	$	268
Restricted stock	4,255		3,765		3,595
Total	$	4,947	$	3,808	$	3,863

As of December 31, 2013, unrecognized equity compensation expense totaled $7.4 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.