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Stock Option Grants
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Option Grants
14. STOCK OPTION GRANTS

As of December 31, 2014, the Company had outstanding stock options granted by USBI to certain employees and non-employee directors under the 2013 Incentive Plan (the “Omnibus Incentive Plan”). The stock option awards were granted with an exercise price equal to the market price of USBI’s stock on the date of the grant. The awards granted were either fully-vested or had a vesting period of one year, with a contractual 10-year term. The Company recognizes the cost of services received in exchange for stock options based on the grant date fair value of the award. The fair value is determined using the Black-Scholes option-pricing model, and the compensation cost is recognized on a straight-line basis over the vesting period of the award. Stock-based compensation expense related to stock options for the year ended December 31, 2014 was $0.3 million. No stock options were granted in 2013, and there were no stock options outstanding as of December 31, 2013. The following table summarizes the Company’s stock option activity for 2014.

 

     December 31, 2014  
     Number of
Shares		      Average
Exercise
Price		  

Options:

      

Outstanding, beginning of year

      —         $ —     

Granted

      83,400         8.09   

Exercised

      —           —     

Expired

      —           —     

Forfeited

      —           —     
  

 

 

     

 

 

  

Options outstanding, end of year

      83,400       $ 8.09   
  

 

 

     

 

 

  

Options exercisable, end of year

      72,650       $ 8.10   
  

 

 

     

 

 

  

To calculate the fair value of the stock options issued in 2014, the Company used a risk-free interest rate of 2.8% which approximated the 10-year Treasury note. In addition, an expected option life of 7.5 years and dividend rate of 1.5% was used. Stock price volatility was calculated using a three year stock price history. The 83,400 options outstanding as of December 31, 2014 had an aggregate intrinsic value (calculated as the amount by which the market value of the underlying stock exceeds the exercise price of the option) of $0.1 million.

On February 23, 2015, the Company granted 96,150 nonqualified stock options to certain members of management and members of the Board of Directors. Since these options were granted subsequent to December 31, 2014, they are not included in the summary above.