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STOCK BASED COMPENSATION PLANS
 6 Months Ended
Jun. 30, 2016
STOCK BASED COMPENSATION PLANS  
STOCK BASED COMPENSATION PLANS

3. STOCK BASED COMPENSATION PLANS

 

The Compensation Committee of the Board of Directors determines stock options and restricted stock awarded under the Bridge Bancorp, Inc. Equity Incentive Plan (“Plan”) and the Company accounts for this Plan under the FASB ASC No. 718. On May 4, 2012, the stockholders of the Company approved the Company’s 2012 Stock-Based Incentive Plan which supersedes the Bridge Bancorp, Inc. Equity Incentive Plan that was approved in 2006. The Plan provides for the grant of stock-based and other incentive awards to officers, employees and directors of the Company.

 

No new grants of stock options were awarded and no compensation expense was attributable to stock options for the six months ended June 30, 2016 and 2015 because all stock options were vested.

 

The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of our common stock as of the exercise or reporting date. The intrinsic value of options exercised during the six months ended June 30, 2016 and 2015 was $38,000 and $3,000, respectively. The intrinsic value of options outstanding and exercisable at June 30, 2016 and 2015 was $48,000 and $50,000, respectively.

 

A summary of the status of the Company’s stock options as of and for the six months ended June 30, 2016 is as follows:

 

        Weighted    
     Weighted  Average    
  Number  Average  Remaining  Aggregate 
  of  Exercise  Contractual  Intrinsic 
(Dollars in thousands, except per share amounts) Options  Price  Life  Value 
Outstanding, January 1,  2016  23,725  $25.25         
Exercised  (8,333) $25.25         
Outstanding, June 30,  2016  15,392  $25.25   0.41 years  $48 
Vested and Exercisable, June 30, 2016  15,392  $25.25   0.41 years  $48 
                 
  Number of  Exercise       
  Options  Price       
Range of Exercise Prices  15,392  $25.25         

 

During the six months ended June 30, 2016, restricted stock awards of 66,809 shares were granted. Of the 66,809 shares granted, 36,000 shares vest over seven years with a third vesting after years five, six and seven, 27,209 shares vest over five years with a third vesting after years three, four and five, and 3,600 shares vest ratably over three years. During the six months ended June 30, 2015, restricted stock awards of 64,987 shares were granted. Of the 64,987 shares granted, 30,625 shares vest over seven years with a third vesting after years five, six and seven, 24,812 shares vest over five years with a third vesting after years three, four and five and the remaining 9,550 shares vest ratably over five years. Compensation expense attributable to restricted stock awards was $387,000 and $738,000 for the three and six months ended June 30, 2016, respectively, and $302,000 and $604,000 for the three and six months ended June 30, 2015, respectively.

 

A summary of the status of the Company’s unvested restricted stock as of and for the six months ended June 30, 2016 is as follows:

 

     Weighted 
     Average Grant-Date 
  Shares  Fair Value 
Unvested, January 1, 2016  281,076  $23.46 
Granted  66,809  $27.91 
Vested  (38,152) $22.01 
Forfeited  (3,266) $24.91 
Unvested, June 30, 2016  306,467  $24.60 

 

Effective in 2015, the Board revised the design of the Long Term Incentive Plan (“LTI Plan”) for Named Executive Officers (“NEOs”) to include performance based awards. The LTI Plan includes 60% performance vested awards based on 3-year relative Total Shareholder Return (“TSR”) to the proxy peer group and 40% time vested awards. The awards are in the form of restricted stock units and cliff vest after five years and require an additional two year holding period before the restricted stock units are delivered in shares of common stock. The Company recorded expense of approximately $51,000 and $91,000 in connection with these awards for the three and six months ended June 30, 2016, respectively, and approximately $22,000 and $36,000 for the three and six months ended June 30, 2015, respectively.

 

In April 2009, the Company adopted a Directors Deferred Compensation Plan (“Directors Plan”). Under the Directors Plan, independent directors may elect to defer all or a portion of their annual retainer fee in the form of restricted stock units. In addition, Directors receive a non-election retainer in the form of restricted stock units. These restricted stock units vest ratably over one year and have dividend rights but no voting rights. In connection with the Directors Plan, the Company recorded expenses of approximately $123,000 and $238,000 for the three and six months ended June 30, 2016, respectively, and $78,000 and $112,000 for the three and six months ended June 30, 2015, respectively.