STOCK BASED COMPENSATION PLANS

9 Months Ended

Sep. 30, 2015

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 FASB ASC No. 718 and 505. On May 4, 2012, the stockholders of the Company approved the Company’s 2012 Stock-Based Incentive Plan which supersedes the Bridge Bancorp, Inc. Equity Incentive Plan that was approved in 2006 (the “2006 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, 2015 and September 30, 2014 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 exercise or reporting date. The intrinsic value of options exercised during the nine months ended September 30, 2015 and September 30, 2014, was $6,000 and $1,000, respectively. The intrinsic value of options outstanding and exercisable at September 30, 2015 and September 30, 2014 was $48,000 and $0, respectively.

A summary of the status of the Company’s stock options as of and for the nine months ended September 30, 2015 is as follows:

				Weighted Average		Weighted Average	Aggregate
	Number of			Exercise		Remaining	Intrinsic
(Dollars in thousands, except per share amounts)	Options			Price		Contractual Life	Value
Outstanding, January 1, 2015		39,870		$	25.63
Granted		—			—
Exercised		(4,777	)		26.07
Forfeited		—			—
Expired		(2,131	)	$	30.60
Outstanding, September 30, 2015		32,962		$	25.25	1.161 years	$	48
Vested and Exercisable, September 30, 2015		32,962		$	25.25	1.161 years	$	48

	Number of		Exercise
Range of Exercise Prices	Options		Price
		32,962	$	25.25
		32,962

During the nine months ended September 30, 2015, restricted stock awards of 66,987 shares were granted. Of the 66,987 shares granted, 30,625 shares vest over seven years with a third vesting after years five, six and seven, 24,812 shares vest over five years with a third vesting after years three, four and five, 10,550 shares vest ratably over five years and the remaining 1,000 shares vest ratably over approximately two years. During the nine months ended September 30, 2014, restricted stock awards of 80,073 shares were granted. Of the 80,073 shares granted, 53,425 shares vest over seven years with a third vesting after years five, six and seven, 20,398 shares vest over five years with a third vesting after years three, four and five and the remaining 6,250 shares vest ratably over approximately two years. Compensation expense attributable to restricted stock awards was $328,000 and $932,000 for the three and nine months ended September 30, 2015, respectively, and $289,000 and $803,000 for the three and nine months ended September 30, 2014, respectively.

A summary of the status of the Company’s unvested restricted stock as of and for the nine months ended September 30, 2015 is as follows:

				Weighted
				Average Grant-Date
	Shares			Fair Value
Unvested, January 1, 2015		248,444		$	22.48
Granted		66,987		$	26.05
Vested		(33,419	)	$	21.81
Forfeited		(3,269	)	$	26.18
Unvested, September 30, 2015		278,743		$	23.37

Effective for 2015, the Board revised the design of the Long Term Incentive Plan (“LTI Plan”) for Named Executive Officers (“NEOs”) to include performance based awards. The LTI Plan includes 60% performance vested awards based on 3-year relative Total Shareholder Return (“TSR”) to the proxy peer group and 40% time vested awards. The awards are in the form of restricted stock units and cliff vest after five years and require an additional two year holding period before the restricted stock units are delivered in shares of common stock. The Company recorded expenses of approximately $23,000 and $59,000 for the three and nine months ended September 30, 2015, respectively.

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 $115,000 and $227,000 for the three and nine months ended September 30, 2015, respectively, and $34,000 and $113,000 for the three and nine months ended September 30, 2014, respectively.