Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

Stock-based compensation [Abstract]

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

Stock-Based Compensation

Stock Options

The Company granted 60,000 time-based stock options to employees during the three months ended September 30, 2013, which vest in equal portions on each of the four anniversaries of the grant date. During the nine months ended September 30, 2013, the Company granted 228,981 performance-based stock options under the Company's Long-Term Incentive Plan ("LTIP"). The performance-based awards will vest, if at all, should the Company achieve three-year performance goals on or before December 31, 2015 for (i) net revenue (Compound Annual Growth Rate), (ii) earnings growth (Net Income) and (iii) profitable growth (Return on Average Equity). The performance metrics are equally weighted such that achievement of any one target results in vesting of one-third of the total equity award. If any of the target(s) are not attained by December 31, 2015, the one-third portion(s) of the award associated with the unattained target(s) will be canceled.

A summary of the Company's time- and performance-based stock option activity for the nine months ended September 30, 2013 is presented below:

	Time-Based								Performance-Based
	Options Outstanding		Weighted Average Exercise Price (in dollars per share)		Options Exercisable		Weighted Average Exercise Price (in dollars per share)		Options Outstanding		Weighted Average Exercise Price (in dollars per share)		Options Exercisable	Weighted Average Exercise Price (in dollars per share)
Balance, December 31, 2012	2,016,231		$	4.38	1,690,040		$	3.66	185,000		$	8.00	—	$	—
Granted	60,000		7.62		—		—		228,981		8.89		—	—
Vested	—		—		114,617		8.44		—		—		—	—
Exercised	(6,250	)	7.84		(6,250	)	7.84		—		—		—	—
Canceled/forfeited	(28,750	)	7.87		—		—		(60,557	)	8.67		—	—
Balance, September 30, 2013	2,041,231		$	4.42	1,798,407		$	3.95	353,424		$	8.46	—	$	—
Weighted average remaining contractual term at September 30, 2013 (in years)	4.3				3.7				9.0				0.0

The following presents the Company's outstanding and exercisable time- and performance-based stock options by exercise price at September 30, 2013:

	Options Outstanding				Options Exercisable
Exercise Price (in dollars per share)	Option Shares Outstanding	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price (in dollars per share)		Option Shares Outstanding	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price (in dollars per share)
$3.03	787,500	2.13	$	3.03	787,500	2.13	$	3.03
3.25	757,963	4.07	3.25		757,963	4.07	3.25
7.62	60,000	9.92	7.62		—	—	—
7.84	232,500	7.75	7.84		131,676	7.75	7.84
7.93	5,000	9.00	7.93		—	—	—
7.97	110,000	8.92	7.97		36,676	8.92	7.97
8.00	170,000	8.75	8.00		—	—	—
8.89	183,424	9.25	8.89		—	—	—
11.00	88,268	7.21	11.00		84,592	7.21	11.00
Totals	2,394,655	5.01	$	5.02	1,798,407	3.74	$	3.95

Information on time- and performance-based stock options, vested and expected to vest, is as follows:	At
	September 30, 2013
Number of shares vested and expected to vest	2,189,548
Weighted average remaining contractual life (in years)	4.62
Weighted average exercise price per option (in dollars)	$	4.66
Intrinsic value (in thousands)	$	8,644

The weighted average assumptions used to estimate the fair values of the stock options granted is as follows:

	For the Nine Months Ended
	September 30, 2013
Expected term (in years)	7.81
Expected volatility	32.37	%
Expected dividends	—	%
Risk-free rate	1.54	%

Restricted Stock Awards

The Company granted 3,415 and 6,016 time-based restricted stock awards to employees during the three and nine months ended September 30, 2013, respectively, which vest in equal portions on each of the four anniversaries of the grant date. During the nine months ended September 30, 2013, the Company granted 76,326 performance-based restricted stock awards to employees under the LTIP. The performance-based restricted stock awards will vest based on the same criteria as the performance based stock options described in the above section titled, "Stock Options."

In addition, during the nine months ended September 30, 2013, the Company granted a total of 75,000 time-based restricted stock awards, equally distributed to five of its Directors, which vest in equal portions on each of the three anniversaries of the grant date.

A summary of the Company's time- and performance-based restricted stock award activity for the nine months ended September 30, 2013 is presented below:

	Time-Based				Performance-Based
	Shares		Weighted Average Grant Date Fair Value (in dollars per share)		Shares		Weighted Average Grant Date Fair Value (in dollars per share)
Shares outstanding at December 31, 2012	103,000		$	8.00	80,861		$	11.00
Granted	81,016		9.39		76,326		8.89
Vested	(29,336	)	7.48		—		—
Forfeited	—		—		(15,185	)	8.89
Shares outstanding at September 30, 2013	154,680		$	8.83	142,002		$	10.09

Stock-Based Compensation Expense

Total time- and performance-based stock-based compensation expense and the related income tax (benefit), as recognized on the Consolidated Statements of Income, is as follows:

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2013			September 30, 2012			September 30, 2013			September 30, 2012
Personnel costs	$	226		$	205		$	614		$	447
Other operating expenses	131			82			373			210
Income tax benefit	(137		)	(110		)	(378		)	(251		)
Net stock-based compensation expense	$	220		$	177		$	609		$	406

Additional information on total non-vested stock-based compensation is as follows:	At
	September 30, 2013
	Stock Options		Restricted Stock Awards
Unrecognized compensation cost related to non-vested awards	$	867	$	1,184
Weighted-average recognition period (in years)	2.4		3.7

For the three and nine months ended September 30, 2013, the Company did not recognize expense on 183,424 performance-based stock options and 61,141 performance-based restricted stock awards because the attainment of the performance metrics associated with these awards was not probable based on current projections.