XML 33 R21.htm IDEA: XBRL DOCUMENT
v3.19.1

Incentive Plan | 12 Months Ended
--- | ---
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Incentive Plan | Incentive Plan On April 20, 2006, the OceanFirst Financial Corp. 2006 Stock Incentive Plan, which authorizes the granting of stock options or awards of common stock, was approved by stockholders. On May 5, 2011, the OceanFirst Financial Corp. 2011 Stock Incentive Plan, which also authorizes the granting of stock options or awards of common stock, was approved by stockholders. This plan was subsequently amended on June 2, 2017. In January 2018, the Company implemented a performance-based stock plan for directors and select senior management executives. The purpose of these plans is to attract and retain qualified personnel in key positions, provide officers, employees and non-employee directors (“Outside Directors”) with a proprietary interest in the Company as an incentive to contribute to the success of the Company, align the interests of management with those of other stockholders and reward employees for outstanding performance. All officers, other employees and Outside Directors of the Company and its affiliates are eligible to receive awards under the plans. Under the amended 2011 Stock Incentive Plan, the Company is authorized to issue up to an additional 4,000,000 shares subject to option or, in lieu of options, up to 1,600,000 shares in the form of stock awards. At December 31, 2018, 1,137,286 options or 454,914 awards remain to be issued. Under the 2006 Stock Incentive Plan, the Company was authorized to issue up to an additional 1,000,000 shares subject to options, or in lieu of options, up to 333,333 shares in the form of stock awards. At December 31, 2018, no options or awards remain to be issued. As part of the Cape acquisition, 599,373 options were granted in 2016 for the conversion of outstanding Cape options. These options had a weighted average exercise price of $10.34 per option and were fully vested upon acquisition. As part of the Ocean Shore acquisition, 287,595 options were granted in 2016 for the conversion of outstanding Ocean Shore options. These options had a weighted average exercise price of $9.37 per option and were fully vested upon acquisition. As part of the Sun acquisition, 491,248 options were granted in 2018 for the conversion of outstanding Sun options. These options had a weighted average exercise price of $21.92 per option and were fully vested upon acquisition. The Company will not recognize compensation expense in the future on these options as they have been accounted for as part of the acquisition. Stock awards generally vest at the rate of 20% per year. In 2018, the Company granted performance-based awards, which vest in equal amounts over a 3 year period when a specific performance metric has been attained or exceeded. Options expire 10 years from the date of grant and generally vest at the rate of 20% per year. The exercise price of each option equals the closing market price of the Company’s stock on the date of grant. The Company typically issues Treasury shares or authorized but unissued shares to satisfy stock option exercises. The Company recognizes the grant-date fair value of stock options and other stock-based compensation issued to employees in the income statement. The modified prospective transition method was adopted and, as a result, the income statement includes $1.0 million, $1.2 million, and $829,000, of expense for stock option grants and $2.0 million, $1.0 million, and $684,000, of expense for stock award grants, for the years ended December 31, 2018, 2017 and 2016, respectively. At December 31, 2018, the Company had $8.7 million in compensation cost related to non-vested options and stock awards not yet recognized. This cost will be recognized over the remaining vesting period of 3.25 years. The fair value of stock options granted by the Company was estimated through the use of the Black-Scholes option pricing model applying the following assumptions:
|  | 2018 |  | 2017 |  | 2016
Risk-free interest rate |  | 2.65 | % |  | 2.31 | % |  | 1.69 | %
Expected option life |  | 7 years |  |  | 7 years |  |  | 7 years |
Expected volatility |  | 21 | % |  | 21 | % |  | 21 | %
Expected dividend yield |  | 2.19 | % |  | 2.07 | % |  | 3.01 | %
Weighted average fair value of an option share granted during the year |  | $ | 5.44 |  |  | $ | 5.62 |  |  | $ | 2.64 |
Intrinsic value of options exercised during the year (in thousands) |  | 8,513 |  |  | 7,882 |  |  | 3,412 |
The risk-free interest rate is based on the U.S. Treasury rate with a term equal to the expected option life. The expected option life conforms to the Company’s actual experience. Expected volatility is based on actual historical results. Compensation cost is recognized on a straight line basis over the vesting period. A summary of option activity for the years ended December 31, 2018, 2017 and 2016 is as follows:
|  | 2018 |  | 2017 |  | 2016
|  | Number of Shares |  | Weighted Average Exercise Price |  | Number of Shares |  | Weighted Average Exercise Price |  | Number of Shares |  | Weighted Average Exercise Price
Outstanding at beginning of year |  | 2,489,314 |  |  | $ | 16.91 |  |  | 2,758,833 |  |  | $ | 14.94 |  |  | 2,281,931 |  |  | $ | 17.62 |
Granted |  | 135,107 |  |  | 27.39 |  |  | 335,150 |  |  | 29.01 |  |  | 317,460 |  |  | 17.27 |
Assumed in acquisition |  | 491,248 |  |  | 21.92 |  |  | — |  |  | — |  |  | 886,968 |  |  | 10.30 |
Exercised |  | (765,624 | ) |  | 17.69 |  |  | (567,153 | ) |  | 14.39 |  |  | (375,576 | ) |  | 13.20 |
Forfeited |  | (9,203 | ) |  | 28.42 |  |  | (35,099 | ) |  | 18.42 |  |  | (11,625 | ) |  | 16.37 |
Expired |  | — |  |  | — |  |  | (2,417 | ) |  | 11.70 |  |  | (340,325 | ) |  | 25.02 |
Outstanding at end of year |  | 2,340,842 |  |  | $ | 18.25 |  |  | 2,489,314 |  |  | $ | 16.91 |  |  | 2,758,833 |  |  | $ | 14.94 |
Options exercisable |  | 1,604,576 |  |  |  |  | 1,608,762 |  |  |  |  | 1,912,630 |  |  |
The following table summarizes information about stock options outstanding at December 31, 2018:
|  | Options Outstanding |  | Options Exercisable
Exercise Prices |  | Number of Options |  | Weighted Average Remaining Contractual Life |  | Weighted Average Exercise Price |  | Number of Options |  | Weighted Average Remaining Contractual Life |  | Weighted Average Exercise Price
$8.45 to 12.28 |  | 465,666 |  |  | 1.7 years |  | $ | 9.82 |  |  | 465,666 |  |  | 1.7 years |  | $ | 9.82 |
12.40 to 15.34 |  | 561,821 |  |  | 3.3 |  | 14.07 |  |  | 554,321 |  |  | 3.3 |  | 14.09 |
16.06 to 18.09 |  | 590,073 |  |  | 6.3 |  | 17.43 |  |  | 271,674 |  |  | 5.9 |  | 17.50 |
19.05 to 27.45 |  | 394,912 |  |  | 6.8 |  | 26.40 |  |  | 244,665 |  |  | 5.5 |  | 26.10 |
29.01 to 33.28 |  | 328,370 |  |  | 8.2 |  | 29.03 |  |  | 68,250 |  |  | 8.0 |  | 29.10 |
|  | 2,340,842 |  |  | 5.0 years |  | $ | 18.25 |  |  | 1,604,576 |  |  | 3.8 years |  | $ | 15.90 |
The aggregate intrinsic value for stock options outstanding and stock options exercisable at December 31, 2018 is $13.7 million and $12.0 million, respectively. A summary of the granted but unvested stock award activity for the years ended December 31, 2018, 2017 and 2016 are as follows:
|  | 2018 |  | 2017 |  | 2016
|  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Number of Shares |  | Weighted Average Grant Date Fair Value
Outstanding at beginning of year: |  | 169,703 |  |  | $ | 21.79 |  |  | 156,945 |  |  | $ | 17.25 |  |  | 126,960 |  |  | $ | 16.90 |
Granted |  | 272,668 |  |  | 27.52 |  |  | 69,175 |  |  | 28.70 |  |  | 66,770 |  |  | 17.66 |
Vested |  | (58,754 | ) |  | 20.81 |  |  | (47,379 | ) |  | 17.32 |  |  | (33,651 | ) |  | 16.31 |
Forfeited |  | (53,019 | ) |  | 26.60 |  |  | (9,038 | ) |  | 19.14 |  |  | (3,134 | ) |  | 16.54 |
Outstanding at end of year |  | 330,598 |  |  | $ | 25.92 |  |  | 169,703 |  |  | $ | 21.79 |  |  | 156,945 |  |  | $ | 17.25 |

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration