v3.19.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Share-Based Compensation
On July 25, 2013, the Company adopted the Equity Based Stock Compensation Plan (“2013 EBSC Plan”) approved by its shareholders to replace the 2003 Stock Option Plan. The 2013 EBSC Plan provided for options to purchase 1,114,446 shares of common stock at a price not less than 100% of the fair market value of the stock. As of December 31, 2018, there were 596,576 shares available for future grants.
Share-Based Compensation Expense
The Company recognized share-based compensation expense of $648 thousand, $699 thousand and $717 thousand, respectively, and realized income tax benefits of $50 thousand, $88 thousand and $92 thousand, respectively, related to share-based compensation for the years ended December 31, 2018, 2017 and 2016. As of December 31, 2018, the Company had unrecognized share-based compensation expense of $1.5 million related to outstanding stock options that will be recognized over a weighted average period of 2.51 years.
Stock Options
The Company has issued stock options to certain employees, officers and directors. Stock options are issued at the closing market price on the grant date, and generally have a three-to five-year vesting period and contractual terms of ten years. The Company recognizes an income tax deduction upon exercise of the stock option by the option holder in an amount equal to the taxable income reported by the option holders. The option holder recognize taxable income based on the closing market price immediately before the exercise date less the exercise price stated in the grant agreement.
The following table presents the weighted-average assumptions used to determine the fair value of options granted for the periods indicated:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Risk-free interest rate
 
2.58
%
 
2.08
%
 
—
%
Expected term
 
6.18 years

 
6.50 years

 
0.00 years

Expected stock price volatility
 
37.10
%
 
42.72
%
 
—
%
Dividend yield
 
0.78
%
 
0.89
%
 
—
%
 
 
 
 
 
 
 

The following table presents information related to the stock option plan for the periods indicated:
 
 
Year Ended December 31,
($ in thousands, except per share data)
 
2018
 
2017
 
2016
Intrinsic value of options exercised
 
$
601

 
$
235

 
$
597

Cash received from options exercised
 
310

 
134

 
569

Tax benefit from options exercised
 
21

 
6

 
22

Weighted-average estimated fair value per share of options granted
 
$
5.71

 
$
5.08

 
$
—

 
 
 
 
 
 
 
The following table represents stock option activity as of and for year ended December 31, 2018:
 
 
Year Ended December 31, 2018
($ in thousands except per share data)
 
Number of Shares
 
Weighted-Average Exercise Price Per Share
 
Weighted-Average Contractual Term
 
Aggregated Intrinsic Value
Outstanding at beginning of year
 
859,635

 
$
8.84

 
7.10 years
 
$
6,155

Granted
 
110,000

 
$
15.36

 
10.00 years
 
 
Exercised
 
(51,621
)
 
$
5.99

 
5.29 years
 
 
Forfeited
 
(19,723
)
 
$
10.14

 
6.93 years
 
 
Balance at end of year
 
898,291

 
$
9.81

 
6.55 years
 
$
5,243

Exercisable at end of year
 
551,017

 
$
8.33

 
5.82 years
 
$
4,034

 
 
 
 
 
 
 
 
 

The following table represents information regarding unvested stock options for the year ended December 31, 2018:
 
 
Year Ended December 31, 2018
 
 
Number of Shares
 
Weighted-Average Exercise Price Per Share
Outstanding at beginning of year
 
578,154

 
$
9.96

Granted
 
110,000

 
$
15.36

Vested
 
(323,553
)
 
$
9.41

Forfeited
 
(17,327
)
 
$
10.24

Balance at end of year
 
347,274

 
$
12.17