Share-based Compensation

9 Months Ended

Sep. 30, 2014

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

Share-based Compensation

Note 7 – Share-based Compensation

The following table summarizes stock options activity for the nine months ended September 30, 2014:

	Shares		Weighted-average exercise prices
Outstanding at December 31, 2013		1,285,536	$	4.77
Granted		100,000		24.01
Forfeited		31,164		1.30
Exercised		452,999		2.09
Outstanding at September 30, 2014		901,373	$	8.36
Exercisable at September 30, 2014		23,374	$	1.30

Management uses the fair value method of recording stock-based compensation as described in the guidance for stock compensation in ASC topic 718.

The following table summarizes nonvested restricted shares activity for the nine months ended September 30, 2014:

Nonvested restricted shares	Shares		Weighted-average grant date fair value
Nonvested at December 31, 2013		9,133	$	24.64
Vested		9,133		24.64
Granted		11,942		23.03
Nonvested at September 30, 2014		11,942	$	23.03

For the three and nine months ended September 30, 2014 the Company recognized compensation expense of $0.6 million and $1.3 million, respectively and for the three months and nine months ended September 30, 2013, the Company recognized $0.2 million and $5.7 million of share-based compensation expense, respectively. As of September 30, 2014, there was $1.6 million of total unrecognized compensation cost related to stock options, which is expected to be recognized over the next 2 years. In addition, for the same period, there was approximately $0.2 million of total unrecognized compensation cost related to nonvested shares of restricted stock. That cost is expected to be fully recognized in eight months.