STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2014

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

7.STOCK-BASED COMPENSATION

Stock Incentive Plans

The Company’s Stock Incentive Plans provide for the granting of stock awards, including restricted stock, stock options and stock appreciation rights, to employees and non-employees, including directors of the Company.

Restricted Stock

For the nine months ended September 30, 2014, 168,334 shares of unvested restricted stock were awarded with a weighted average value of $11.26.  Of the restricted shares granted, 80,591 shares have performance based vesting conditions.  The value of the shares is amortized to compensation expense over the related service period, which is normally three years.  Shares of unvested restricted stock are forfeited if a recipient leaves the Company before the vesting date.  Shares that are forfeited become available for future awards.

The following is a summary of restricted stock activity for the nine months ended September 30, 2014:

	Number of
	Shares
Outstanding at beginning of period	520,195
Awarded	168,334
Vested	(109,048	)
Forfeited	(42,141	)
Outstanding at end of period	537,340

For the quarters ended September 30, 2014 and 2013, stock compensation expense, net of forfeitures, of $370 and $172 was recorded, respectively.  For the nine months ended September 30, 2014 and 2013, stock compensation expense, net of forfeitures of $1,137 and $674 was recorded, respectively.