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Stock Based Compensation
 9 Months Ended
Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Based Compensation

NOTE 14 – STOCK BASED COMPENSATION

Stock based compensation expense that has been charged against income was $585,000 and $1,864,000 for the three and nine months ended September 30, 2016, respectively, and $846,000 and $2,394,000 for the three and nine months ended September 30, 2015, respectively.

2014 Omnibus Incentive Plan

The Company’s 2014 Omnibus Incentive Plan (“Omnibus Incentive Plan”) provides for the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other awards that may be settled in, or based upon the value of, the Company’s common stock. The aggregate number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,200,000 shares.

Restricted Stock Awards

A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2016 were as follows:

  

 

 

 

 

 

Weighted-Average

 

 

 

 

 

 

 

Grant-Date

 

Nonvested RSAs

 

Shares

 

 

Fair Value

 

Nonvested at January 1, 2016

 

 

201,270

 

 

$

14.24

 

Granted

 

 

101,105

 

 

 

15.87

 

Vested

 

 

(47,727

)

 

 

14.60

 

Forfeited

 

 

(7,274

)

 

 

15.06

 

Nonvested at September 30, 2016

 

 

247,374

 

 

$

14.82

 

RSAs granted to employees under the Omnibus Incentive Plan typically vest over two to three years. Compensation expense for RSAs granted under the Omnibus Incentive Program will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of September 30, 2016, there was $1,263,000 of unrecognized compensation cost related to nonvested RSAs granted under the Omnibus Incentive Plan. The cost is expected to be recognized over a remaining period of 2.71 years.

Stock Options

A summary of the changes in the Company’s stock options under the Omnibus Incentive Plan for the nine months ended September 30, 2016 were as follows:

  

 

 

 

 

 

Weighted-Average

 

Stock Options

 

Shares

 

 

Exercise Price

 

Outstanding at January 1, 2016

 

 

—

 

 

$

—

 

Granted

 

 

164,175

 

 

 

15.87

 

Exercised

 

 

—

 

 

 

—

 

Forfeited or expired

 

 

—

 

 

 

—

 

Outstanding at September 30, 2016

 

 

164,175

 

 

$

15.87

 

 

Stock options outstanding at September 30, 2016 had an intrinsic value of $652,000, a weighted-average remaining contractual term of 9.50 years, were all expected to vest, and were not exercisable. The weighted-average grant date fair value of options granted during the nine months ended September 30, 2016 was $5.85 per option.

 

Stock options awarded to employees under the Omnibus Incentive Plan are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant, vest over four years, and have ten year contractual terms. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. Expected volatilities were determined based on historical volatilities of a peer group of companies with a similar size, industry, stage of life cycle, and capital structure. The expected term of the options granted was determined based on the SEC simplified method. The risk-free interest rate for the expected term of the options was derived from the Treasury Constant Maturity yield curve on the valuation date.

 

The fair value of the stock options granted was determined using the following weighted-average assumptions:

 

 

 

2016

 

Risk-free interest rate

 

 

1.49

%

Expected Term

 

6.25 Years

 

Expected stock price volatility

 

 

34.96

%

Dividend yield

 

 

—

 

 

As of September 30, 2016, there was $711,000 of unrecognized compensation cost related to nonvested stock options granted under the Omnibus Incentive Plan. The cost is expected to be recognized over a remaining period of 3.50 years.