• Filing Date: 2018-03-07
  • Form Type: 10-K
  • Description: Annual report
v3.8.0.1
Stock-Based Compensation
12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

Note 20 — Stock-Based Compensation

Incentive Plan

The Company currently has outstanding stock-based awards granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan. Only the 2012 Plan is active and available for future grants. With respect to the 2012 Plan, the Company may grant stock-based awards to employees, directors, consultants, and advisors of the Company. On March 17, 2017, the Company’s board of directors amended the 2012 Omnibus Incentive Plan and reduced the number of shares reserved under the plan from 5,000,000 shares to 3,000,000 shares. At December 31, 2017, there were 1,995,655 shares available for grant.

Stock Options

Stock options granted and outstanding under the incentive plans vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years.

 

A summary of the stock option activity for the years ended December 31, 2017, 2016 and 2015 is as follows (option amounts not in thousands):

 

     Number
of Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual
Term
     Aggregate
Intrinsic
Value
 

Outstanding at January 1, 2015

     230,000      $ 3.00        3.0 years      $ 9,256  
  

 

 

          

Exercised

     (120,000    $ 2.82        
  

 

 

          

Outstanding at December 31, 2015

     110,000      $ 3.19        2.3 years      $ 3,482  
  

 

 

          

Exercised

     (60,000    $ 2.50        
  

 

 

          

Outstanding at December 31, 2016

     50,000      $ 4.02        2.3 years      $ 1,773  
  

 

 

          

Granted

     110,000      $ 40.00        

Exercised

     (30,000    $ 2.50        
  

 

 

          

Outstanding at December 31, 2017

     130,000      $ 34.82        8.2 years      $ 472  
  

 

 

          

Exercisable at December 31, 2017

     20,000      $ 6.30        3.7 years      $ 472  
  

 

 

          

The following table summarizes information about options exercised for the years ended December 31, 2017, 2016 and 2015 (option amounts not in thousands):

 

     2017      2016      2015  

Options exercised

     30,000        60,000        120,000  

Total intrinsic value of exercised options

   $ 1,319      $ 1,376      $ 4,551  

Tax benefits realized

   $ 509      $ 501      $ 1,697  

During the year ended December 31, 2015, a total of 120,000 options were exercised, of which 30,000 options were net settled by surrender of 2,013 shares. For the years ended December 31, 2017, 2016 and 2015, the Company recognized $306, $0 and $0, respectively, of compensation expense which was included in general and administrative personnel expenses. Deferred tax benefits related to stock options were $78, $0 and $0 for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017 and 2016, there was $941 and $0, respectively, of unrecognized compensation expense related to nonvested stock options. The Company expects to recognize the remaining compensation expense over a weighted-average period of 3.0 years.

The following table provides assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the stock options granted during the year ended December 31, 2017:

 

Expected dividend yield

     3.53

Expected volatility

     42.86

Risk-free interest rate

     1.92

Expected life (in years)

     5  

 

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only performance or service-based conditions is based on the market value of the Company’s stock on the grant date.

Information with respect to the activity of unvested restricted stock awards during the years ended December 31, 2017, 2016 and 2015 is as follows:

 

     Number of
Restricted
Stock
Awards
     Weighted
Average
Grant Date
Fair Value
 

Nonvested at January 1, 2015

     639,705      $ 28.33  

Granted

     83,260      $ 44.46  

Vested

     (59,695    $ 30.13  

Forfeited

     (42,757    $ 28.15  
  

 

 

    

Nonvested at December 31, 2015

     620,513      $ 30.33  
  

 

 

    

Granted

     142,440      $ 32.35  

Vested

     (47,152    $ 42.27  

Cancelled

     (160,000    $ 26.27  

Forfeited

     (13,298    $ 39.06  
  

 

 

    

Nonvested at December 31, 2016

     542,503      $ 30.81  
  

 

 

    

Granted

     154,936      $ 42.92  

Vested

     (75,983    $ 37.95  

Forfeited

     (23,766    $ 36.32  
  

 

 

    

Nonvested at December 31, 2017

     597,690      $ 32.82  
  

 

 

    

The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $4,217, $4,198 and $5,212 for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017 and 2016, there was approximately $9,101 and $7,531, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 32 months. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the years ended December 31, 2017, 2016 and 2015.

 

     2017      2016      2015  

Deferred tax benefits recognized

   $ 970      $ 1,619      $ 1,453  

Tax benefits realized for restricted stock and paid dividends

   $ 1,396      $ 140      $ 598  

Fair value of vested restricted stock

   $ 2,884      $ 1,993      $ 1,798  

 

During the years ended December 31, 2017, 2016 and 2015, no awards were issued with other than time-based vesting conditions.