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STOCK BASED COMPENSATION PLANS
 9 Months Ended
Sep. 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 nine months ended September 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 nine months ended September 30, 2016 and 2015 was $47,000 and $6,000, respectively. The intrinsic value of options outstanding and exercisable at September 30, 2016 and 2015 was $45,000 and $48,000, respectively.

 
The following table summarizes the status of the Company’s stock options as of and for the nine months ended September 30, 2016:

 

    Number           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     (10,110 )   $ 25.25              
Outstanding, September 30,  2016     13,615     $ 25.25     0.16 years   $ 45  
Vested and Exercisable, September 30, 2016     13,615     $ 25.25     0.16 years   $ 45  

 

During the nine months ended September 30, 2016, restricted stock awards of 68,309 shares were granted. Of the 68,309 shares granted, 36,000 shares vest over seven years with a third vesting after years five, six and seven, 27,709 shares vest over five years with a third vesting after years three, four and five, and 4,600 shares vest ratably over three years. During the nine months ended September 30, 2015, restricted stock awards of 66,987 shares were granted. Of the 66,987 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, 10,550 shares vest ratably over five years and the remaining 1,000 shares vest ratably over approximately two years. Compensation expense attributable to restricted stock awards was $352,000 and $1.1 million for the three and nine months ended September 30, 2016, respectively, and $328,000 and $932,000 for the three and nine months ended September 30, 2015, respectively.

 

The following table summarizes the status of the Company’s unvested restricted stock as of and for the nine months ended September 30, 2016:

 

          Weighted  
          Average Grant-Date  
    Shares     Fair Value  
Unvested, January 1, 2016     281,076     $ 23.46  
Granted     68,309     $ 27.94  
Vested     (40,227 )   $ 22.15  
Forfeited     (6,667 )   $ 25.95  
Unvested, September 30, 2016     302,491     $ 24.59  

 

Effective in 2015, the Board revised the design of the Long Term Incentive Plan (“LTI Plan”) for Named Executive Officers to include performance based awards. The LTI Plan includes 60% performance vested awards based on 3-year relative Total Shareholder Return to the proxy peer group and 40% time vested awards. The awards are in the form of restricted stock units which cliff vest after five years and require an additional two year holding period before being delivered in shares of common stock. The Company recorded expense of $51,000 and $142,000 in connection with these awards for the three and nine months ended September 30, 2016, respectively, and $23,000 and $59,000 for the three and nine months ended September 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 $128,000 and $366,000 for the three and nine months ended September 30, 2016, respectively, and $115,000 and $227,000 for the three and nine months ended September 30, 2015, respectively.