STOCK BASED COMPENSATION PLANS

9 Months Ended

Sep. 30, 2013

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. 2012 Stock-Based Incentive Plan (“Plan”) and the Company accounts for this Plan under the FASB ASC No. 718 and 505. On May 4, 2012, the stockholders of the Company approved the Plan. The plan provides for the grant of stock-based and other incentive awards to officers, employees and directors of the Company.

No new grants of stock options were awarded and no compensation expense was attributable to stock options for the nine months ended September 30, 2013 and September 30, 2012 because all stock options were vested.

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 first nine months of 2013 and 2012. The intrinsic value of options outstanding and exercisable at September 30, 2013 and September 30, 2012 was $0 and $16,000, respectively.

A summary of the status of the Company’s stock options as of and for the nine months ended September 30, 2013 is as follows:

					Weighted
			Weighted		Average
	Number		Average		Remaining	Aggregate
	of		Exercise		Contractual	Intrinsic
(Dollars in thousands, except per share amounts)	Options		Price		Life	Value
Outstanding, December 31, 2012	49,962		$	25.32
Granted	—		—
Exercised	—		—
Forfeited	—		—
Expired	(600	)	$	15.47
Outstanding, September 30, 2013	49,362		$	25.44	2.73 years	—
Vested and Exercisable, September 30, 2013	49,362		$	25.44	2.73 years	—
	Number of		Exercise
Range of Exercise Prices	Options		Price
	4,572		$	24.00
	39,659		$	25.25
	3,000		$	26.55
	2,131		$	30.60
	49,362

During the nine months ended September 30, 2013 restricted stock awards of 72,940 shares were granted. Of the 72,940 shares granted, 51,175 shares vest over seven years with one third vesting after each of the years five, six and seven; 12,652 shares vest over five years with one third vesting after each of the years three, four and five; and the remaining 9,113 shares vest ratably over approximately five years. During the nine months ended September 30, 2012, restricted stock awards of 21,993 shares were granted. These awards vest over approximately five years with a third vesting after years three, four and five. Compensation expense attributable to restricted stock awards was $281,000 and $868,000 for the three and nine months ended September 30, 2013, respectively, and $292,000 and $912,000 for the three and nine months ended September 30, 2012, respectively.

A summary of the status of the Company’s unvested restricted stock as of and for the nine months ended September 30, 2013 is as follows:

			Weighted
			Average Grant-Date
	Shares		Fair Value
Unvested, December 31, 2012	177,927		$	21.38
Granted	72,940		$	20.78
Vested	(31,399	)	$	21.66
Forfeited	(3,187	)	$	21.49
Unvested, September 30, 2013	216,281		$	21.13

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 $34,000 and $109,000 for the three and nine months ended September 30, 2013, respectively, and $39,000 and $118,000 for the three and nine months ended September 30, 2012, respectively.