Stock Based Compensation

3 Months Ended

Mar. 31, 2016

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 497,500 shares of restricted stock are outstanding and have not yet vested as of March 31, 2016. 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 307,500 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 three months ended March 31, 2016.

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 March 31,
	2016			2015
Restricted share grants	139,225			129,975
Per share grant price	$	21.74		$	24.60
Deferred compensation to be recognized over vesting period	$	3,027,000		$	3,197,000
Number of non-vested shares:
Non-vested beginning of period	538,755			480,995
Grants	139,225			129,975
Vested during period	(72,730		)	(70,685		)
Forfeitures	(250		)	—

Non-vested end of period	605,000			540,285

The following information includes the 200,000 Units:

Average per share value of non-vested shares (based on grant price)	$	18.00	$	17.12


Value of shares vested during the period (based on grant price)	$	1,177,000	$	586,000


Average value of shares forfeited during the period (based on grant price)	$	21.05	$	—


The total charge to operations for all incentive plans is as follows:
Outstanding restricted stock grants	$	649,500	$	548,000
Outstanding restricted stock units	16,200		29,000

Total charge to operations	$	665,700	$	577,000

As of March 31, 2016, there were approximately $8,080,000 of total compensation costs related to non-vested awards that have not yet been recognized, including $151,000 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 2.5 years.