Note 12 — Stock-Based Compensation

Incentive Plans

The Company currently has outstanding stock-based awards granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan. Only the 2012 Plan is active and available for future grants. At June 30, 2015, there were 4,197,622 shares available for grant under the 2012 plan.

Stock Options

Stock options granted and outstanding under the incentive plans vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years.

A summary of the stock option activity for the three and six months ended June 30, 2015 and 2014 is as follows (option amounts not in thousands):


	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2015		230,000		$	3.00		3.0 years	$	9,256
Outstanding at March 31, 2015		230,000		$	3.00		2.8 years	$	9,861

Exercised		(80,000	)	$	2.50

Outstanding at June 30, 2015		150,000		$	3.26		2.9 years	$	6,142

Exercisable at June 30, 2015		150,000		$	3.26		2.9 years	$	6,142

Outstanding at January 1, 2014		280,000		$	2.91		3.9 years	$	14,166
Exercised		(50,000	)	$	2.50

Outstanding at March 31, 2014		230,000		$	3.00		3.8 years	$	7,683

Outstanding at June 30, 2014		230,000		$	3.00		3.5 years	$	8,649

Exercisable at June 30, 2014		230,000		$	3.00		3.5 years	$	8,649

The following table summarizes information about options exercised for the three and six months ended June 30, 2015 and 2014 (option amounts not in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Options exercised		80,000		—		80,000		50,000
Total intrinsic value of exercised options	$	3,188		—	$	3,188	$	1,970
Fair value of vested stock options	$	—	$	17	$	—	$	17
Tax benefits realized	$	1,192		—	$	1,192	$	603

All outstanding stock options vested and their related compensation expense had been fully recognized prior to 2015. The Company recognized compensation expense related to stock options, which is included in other operating expenses, of approximately $1 and $6, respectively, for the three and six months ended June 30, 2014. The associated deferred tax benefits were immaterial.

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only performance or service-based conditions is based on the market value of the Company’s common stock on the grant date.

Information with respect to the activity of unvested restricted stock awards during the three and six months ended June 30, 2015 and 2014 is as follows (share amounts not in thousands):


	Number of Restricted Stock Awards			Weighted Average Grant Date Fair Value
Nonvested at January 1, 2015		639,705		$	28.33
Vested		(41,695	)	$	36.15
Forfeited		(1,088	)	$	48.42

Nonvested at March 31, 2015		596,922		$	27.75

Granted		83,260		$	44.46
Vested		(16,000	)	$	13.48
Forfeited		(33,324	)	$	23.20

Nonvested at June 30, 2015		630,858		$	30.55

Nonvested at January 1, 2014		735,650		$	25.48
Granted		98,720		$	48.42
Vested		(21,825	)	$	21.56
Forfeited		(505	)	$	32.20

Nonvested at March 31, 2014		812,040		$	28.37

Vested		(32,000	)	$	12.95
Forfeited		(2,825	)	$	43.43

Nonvested at June 30, 2014		777,215		$	28.95

The Company recognized compensation expense related to restricted stock, which is included in other operating expenses, of $1,381 and $2,247 for the three months ended June 30, 2015 and 2014, respectively, and $2,789 and $4,327 for the six months ended June 30, 2015 and 2014, respectively. At June 30, 2015 and 2014, there was approximately $10,442 and $14,071, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 21 months. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and related paid dividends, and the fair value of vested restricted stock for the three and six months ended June 30, 2015 and 2014:


	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Deferred tax benefits recognized	$	532	$	866	$	1,076	$	1,669
Tax benefits realized for restricted stock and paid dividends	$	240	$	389	$	499	$	701
Fair value of vested restricted stock	$	216	$	414	$	1,723	$	885

During the three and six months ended June 30, 2015, no performance awards were issued.