Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v2.4.0.8
Share-Based Compensation
 3 Months Ended
Mar. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

Note 9 — Share-Based Compensation

Share-Based Compensation Expense

For the three months ended March 31, 2014 and 2013, share-based compensation expense was $605,000 and $97,000, respectively, and the related tax benefits on non-qualified stock options were $5,000 and $11,000, respectively.

Unrecognized Share-Based Compensation Expense

As of March 31, 2014, unrecognized share-based compensation expense was as follows:

 

     Unrecognized
Expense		      Average
Expected
Recognition
Period		  
     (In thousands)  

Stock option awards

    $ 1,369         2.2 years   

Restricted stock awards

      1,650         2.5 years   
  

 

 

     

Total unrecognized share-based compensation expense

    $ 3,019         2.3 years   
  

 

 

     

 

The table below provides stock option information for the three months ended March 31, 2014:

 

     Number of
Shares		     Weighted-
Average
Exercise
Price Per
Share		      Weighted-
Average
Remaining
Contractual
Life		      Aggregate
Intrinsic
Value of
In-the-
Money
Options		  
     (In thousands, except share and per share data)  

Options outstanding at beginning of period

      546,595      $ 28.09         8.4 years       $ 3,384 (1) 

Options exercised

      (15,195 )    $ 12.54         8.7 years      

Options forfeited

      (1,375 )    $ 12.54         8.7 years      

Options expired

      (27,837 )    $ 105.53         .7 years      
  

 

 

          

Options outstanding at end of period

      502,188      $ 24.31         8.6 years       $ 3,873 (2) 
  

 

 

          

Options exercisable at end of period

      111,938      $ 54.80         6.3 years       $ 855 (2) 

 

(1)  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $21.89 as of December 31, 2013, over the exercise price, multiplied by the number of options.
(2)  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $23.30 as of March 31, 2014, over the exercise price, multiplied by the number of options.

There were 15,195 stock options exercised during the three months ended March 31, 2014 compared to 1,679 stock options exercised during the same period in 2013.

Restricted Stock Awards

Restricted stock awards granted under the 2013 Equity Compensation Plan, which replaced the 2007 Equity Compensation Plan, generally become fully vested after three to five years of continued employment from the date of grant. Hanmi Financial becomes entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted stock awards when the restrictions are released and the shares are issued. Restricted stock awards are forfeited if officers and employees terminate prior to the lapsing of restrictions. Forfeitures of restricted stock awards are treated as cancelled shares.

The table below provides information for restricted stock awards for the three months ended March 31, 2014:

 

     Number of
Shares		     Weighted-
Average
Grant Date
Fair Value
Per Share		  

Restricted stock at beginning of period

      116,082      $ 16.43   

Restricted stock granted

      18,000      $ 22.89   

Restricted stock vested

      (12,000 )    $ 22.11   
  

 

 

    

Restricted stock at end of period

      122,082      $ 16.82