STOCK BASED COMPENSATION PLANS

6 Months Ended

Jun. 30, 2011

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS

3. STOCK BASED COMPENSATION PLANS

The Compensation Committee of the Board of Directors determines stock options and restricted stock awarded under the Bridge Bancorp, Inc. Equity Incentive Plan (“Plan”) and the Company accounts for this Plan under the Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 718 and 505.

No new grants of stock options were awarded during the six months ended June 30, 2011, and June 30, 2010.  There was no compensation expense attributable to stock options for the six months ended June 30, 2011 because all stock options were vested. Compensation expense attributable to stock options was $10,000 and $20,000 for the three and six months ended June 30, 2010, respectively.

The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of our common stock as of the reporting date.  No stock options were exercised during the second quarter of 2011 and 2010. The intrinsic value of options outstanding and exercisable at June 30, 2011 and June 30, 2010 was $12,000 and $20,000, respectively.

A summary of the status of the Company’s stock options as of and for the six months ended June 30, 2011 is as follows:

					Weighted
			Weighted		Average
	Number		Average		Remaining	Aggregate
	of		Exercise		Contractual	Intrinsic
	Options		Price		Life	Value
Outstanding, December 31, 2010	56,375		$	25.06
Granted	—		—
Exercised	—		—
Forfeited	(2,152	)	$	25.26
Expired	—		—
Outstanding, June 30, 2011	54,223		$	25.05	4.83 years	$	12,208
Vested and Exercisable, June 30, 2011	54,223		$	25.05	4.83 years	$	12,208

	Number of	Exercise
Range of Exercise Prices	Options	Price
	2,100	$	15.47
	5,359	$	24.00
	41,436	$	25.25
	3,000	$	26.55
	2,328	$	30.60
	54,223

During the six months ended June 30, 2011, restricted stock awards of 13,688 shares were granted. These awards vest over approximately five years with a third vesting after years three, four and five. During the six months ended June 30, 2010 restricted stock awards of 15,500 shares were granted. Of the 15,500 shares granted, 11,070 shares vest over five years with a third vesting after years three, four and five. The remaining 4,430 shares vest ratably over approximately five years. Compensation expense attributable to restricted stock awards was $220,000 and $447,000 for the three and six months ended June 30, 2011, respectively, and $184,000 and $361,000 for the three and six months ended June 30, 2010, respectively.

A summary of the status of the Company’s unvested restricted stock as of and for the six months ended June 30, 2011 is as follows:

			Weighted
			Average Grant-Date
	Shares		Fair Value
Unvested, December 31, 2010	181,588		$	21.96
Granted	13,688		$	22.77
Vested	(14,984	)	$	22.07
Forfeited	(1,304	)	$	21.89
Unvested, June 30, 2011	178,988		$	22.02

In April 2009, the Company adopted a Directors Deferred Compensation Plan. Under the Plan, independent directors may elect to defer all or a portion of their annual retainer fee in the form of restricted stock units. In addition, Directors receive a non-election retainer in the form of restricted stock units.  These restricted stock units vest ratably over one year and have dividend rights but no voting rights. In connection with this Plan, the Company recorded expenses of approximately $33,000 and $65,000 for the three and six months ended June 30, 2011, respectively and $28,000 and $49,000 for the three and six months ended June 30, 2010, respectively.