Equity Incentive Plan

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

In May 2015, the Company granted to directors and employees a total of 419,000 restricted shares, and 1,090,000 stock options to purchase Company stock. These shares and options were issued out of the 2014 Equity Incentive Plan ("the Plan"), which allows the Company to grant common stock or options to purchase common stock at specific prices to directors and employees of the Company. All stock options and restricted stock granted to date vest in equal installments over a five-year period beginning one year from the date of grant. The vesting of options and restricted stock awards may accelerate in accordance with terms of the Plan. Stock options were granted at an exercise price equal to the fair value of the Company’s common stock on the grant date based on quoted market prices and all have an expiration period of ten years. The fair value of stock options granted on May 27, 2015, was estimated utilizing the Black-Scholes option pricing model using the following assumptions: an expected life of 6.5 years, risk-free rate of return of 1.67%, volatility of 32.06% and a dividend yield of 1.90%.

The following table is a summary of the Company’s stock options outstanding as of June 30, 2015, and changes therein during the six months then ended.



	Number of Stock Options		Weighted Average Grant Date Fair Value		Weighted Average Exercise Price		Weighted Average Contractual Life (years)
Outstanding - December 31, 2014	5,138,072		$	3.08	$	10.04	7.44
Granted	1,090,000		4.07		14.76		9.92
Forfeited	(60,000	)	3.91		13.13		—
Exercised	(84,624	)	2.30		7.09		—
Outstanding - June 30, 2015	6,083,448		3.29		10.89		6.89
Exercisable - June 30, 2015	3,026,770		2.57		8.06		4.46

Expected future stock option expense related to the non-vested options outstanding as of June 30, 2015, is $12.0 million over an average period of 4.30 years.

The following is a summary of the status of the Company’s restricted share awards as of June 30, 2015, and changes therein during the six months then ended.



	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at December 31, 2014	1,003,074		$	13.11
Granted	419,000		14.76
Vested	(193,232	)	13.11
Forfeited	(28,200	)	13.13
Non-vested at June 30, 2015	1,200,642		13.69

Expected future stock award expense related to the non-vested restricted share awards as of June 30, 2015, is $16.3 million over an average period of 4.30 years.

During the six months ended June 30, 2015 and 2014, the Company recorded $2.6 million and $510,000, respectively, of stock-based compensation related to the above plans.