Stock Based Compensation

9 Months Ended

Sep. 30, 2015

Note 14 - Stock Based Compensation

A maximum of 600,000 shares of the Company’s common stock is authorized for issuance pursuant to the Company’s 2012 Incentive Plan, of which 359,000 shares of restricted stock are outstanding as of September 30, 2015. For accounting purposes, the restricted stock is not included in the shares shown as outstanding on the balance sheet until they vest; however, dividends are paid on the unvested shares. An aggregate of 380,000 shares of restricted stock and restricted stock units outstanding under the Company’s 2009 equity incentive plan have not yet vested and no additional awards may be granted under this plan.

Pursuant to the Pay-for-Performance Program, there are 200,000 performance share awards in the form of restricted stock units (the “Units”) outstanding under the Company’s 2009 Incentive Plan. The holders of Units are not entitled to dividends or to vote the underlying shares until the Units vest and shares are issued. Accordingly, for accounting purposes, the shares underlying the Units are not included in the shares shown as outstanding on the balance sheet. No Units were forfeited or vested in the nine months ended September 30, 2015.

The following is a summary of the activity of the equity incentive plans excluding, except as otherwise noted, the 200,000 Units:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015			2014
Restricted share grants	—		—			129,975			118,850
Per share grant price	—		—			$	24.60		$	20.54
Deferred compensation to be recognized over vesting period	—		—			$	3,197,000		$	2,441,000
Number of non-vested shares:
Non-vested beginning of period	538,990		481,045			480,995			470,015
Grants	—		—			129,975			118,850
Vested during period	—		—			(71,980		)	(101,300		)
Forfeitures	—		(50		)	—			(6,570		)

Non-vested end of period	538,990		480,995			538,990			480,995


The following information includes the 200,000 Units:

Average per share value of non-vested shares (based on grant price)	$	17.12	$	14.55		$	17.12		$	14.55


Value of shares vested during the period (based on grant price)	$	—	$	—		$	607,000		$	621,000


The total charge to operations for all incentive plans is as follows:
Outstanding restricted stock grants	$	550,000	$	419,000		$	1,653,000		$	1,281,000
Outstanding restricted stock units	30,000		29,000			89,000			87,000

Total charge to operations	$	580,000	$	448,000		$	1,742,000		$	1,368,000

As of September 30, 2015, there were approximately $6,311,000 of total compensation costs related to non-vested awards that have not yet been recognized, including $207,000 related to the Units (net of forfeiture and performance assumptions which are re-evaluated quarterly). These compensation costs will be charged to general and administrative expense over the remaining respective vesting periods. The weighted average vesting period is approximately 2.3 years.