STOCK BASED COMPENSATION PLANS

6 Months Ended

Jun. 30, 2017

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS

3. STOCK BASED COMPENSATION PLANS

The Compensation Committee of the Board of Directors determines restricted stock awarded under the Bridge Bancorp, Inc. Equity Incentive Plan (“Plan”) and the Company accounts for this Plan under FASB ASC No. 718. The Company’s 2012 Stock-Based Incentive Plan provides for the grant of stock-based and other incentive awards to officers, employees and directors of the Company.

The following table summarizes the status of the Company’s unvested restricted stock as of and for the six months ended June 30, 2017:

				Weighted
				Average Grant-Date
	Shares			Fair Value
Unvested, January 1, 2017		301,991		$	24.59
Granted		70,981		$	35.62
Vested		(40,881	)	$	22.16
Forfeited		(800	)	$	27.72
Unvested, June 30, 2017		331,291		$	27.25

During the six months ended June 30, 2017, restricted stock awards of 70,981 shares were granted. Of the 70,981 shares granted, 31,860 shares vest over seven years with a third vesting after years five, six and seven, 25,396 shares vest over five years with a third vesting after years three, four and five, 10,270 shares vest ratably over three years, and 3,455 shares vest over six months. During the six months ended June 30, 2016, restricted stock awards of 66,809 shares were granted. Of the 66,809 shares granted, 36,000 shares vest over seven years with a third vesting after years five, six and seven, 27,209 shares vest over five years with a third vesting after years three, four and five, and 3,600 shares vest ratably over three years. Compensation expense attributable to restricted stock awards was $503,000 and $916,000 for the three and six months ended June 30, 2017, respectively, and $387,000 and $738,000 for the three and six months ended June 30, 2016, respectively.

Effective in 2015, the Board revised the design of the Long Term Incentive Plan (“LTI Plan”) for Named Executive Officers to include performance-based awards. The LTI Plan includes 60% performance vested awards based on 3-year relative Total Shareholder Return to the proxy peer group and 40% time vested awards. The awards are in the form of restricted stock units which cliff vest after five years and require an additional two-year holding period before being delivered in shares of common stock. The Company recorded expense of $79,000 and $148,000 in connection with these awards for the three and six months ended June 30, 2017, respectively, and $51,000 and $91,000 for the three and six months ended June 30, 2016, respectively.

In April 2009, the Company adopted a Directors Deferred Compensation Plan (“Directors Plan”). Under the Directors 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 the Directors Plan, the Company recorded expense of $132,000 and $260,000 for the three and six months ended June 30, 2017, respectively, and $123,000 and $238,000 for the three and six months ended June 30, 2016, respectively.