Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v3.3.0.814
Share-Based Compensation
9 Months Ended
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Share-Based Compensation

Share-Based Compensation Expense

For the three and nine months ended September 30, 2015, share-based compensation expenses were $658,000 and $1.7 million, respectively, and net tax benefits recognized from stock option exercises and restricted stock awards were $229,000 and $567,000, respectively. For the three and nine months ended September 30, 2014, share-based compensation expenses were $695,000 and $1.7 million, respectively, and net tax benefits recognized from stock option exercises and restricted stock awards were $317,000 and $500,000, respectively.

Unrecognized Share-Based Compensation Expense

As of September 30, 2015, unrecognized share-based compensation expense was as follows:
 
Unrecognized
Expense
 
Average Expected
Recognition
Period
 
(in thousands)
Stock option awards
$
785

 
1.3 years
Restricted stock awards
2,499

 
1.9 years
Total unrecognized share-based compensation expense
$
3,284

 
1.8 years


The table below provides stock option information for the three months ended September 30, 2015:
 
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
553,440

 
$
24.42

 
7.8 years
 
$
1,764

(1) 
Options exercised
(13,311
)
 
$
12.54

 
6.5 years
 

 
Options forfeited
(2,875
)
 
$
12.54

 
7.2 years
 

 
Options expired
(1,375
)
 
$
144.00

 
0.6 years
 

 
Options outstanding at end of period
535,879

 
$
24.47

 
7.6 years
 
$
4,099

(2) 
Options exercisable at end of period
304,251

 
$
29.09

 
7.0 years
 
$
2,511

(2) 
                              
(1) 
Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $24.84 as of June 30, 2015, 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 $25.20 as of September 30, 2015, over the exercise price, multiplied by the number of options.

The table below provides stock option information for the nine months ended September 30, 2015:
 
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
603,872

 
$
23.78

 
8.3 years
 
$
2,853

(1) 
Options granted
28,000

 
$
23.47

 
9.7 years
 
 
 
Options exercised
(39,766
)
 
$
13.36

 
7.1 years
 
 
 
Options forfeited
(54,502
)
 
$
20.67

 
8.5 years
 
 
 
Options expired
(1,725
)
 
$
144.00

 
0.6 years
 
 
 
Options outstanding at end of period
535,879

 
$
24.47

 
7.6 years
 
$
4,099

(2) 
Options exercisable at end of period
304,251

 
$
29.09

 
7.0 years
 
$
2,511

(2) 
                              
(1) 
Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $21.81 as of December 31, 2014, 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 $25.20 as of September 30, 2015, over the exercise price, multiplied by the number of options.

There were 13,311 and 687 stock options exercised during the three months ended September 30, 2015 and 2014, respectively and 39,766 and 34,382 stock options exercised during the nine months ended September 30, 2015 and 2014.

Restricted Stock Awards

Restricted stock awards under the Company’s 2007 and 2013 Equity Compensation Plans typically vest over three years, and are subject to forfeiture if employment terminates prior to the lapse of restrictions. Hanmi Financial becomes entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted shares when the restrictions are released and the shares are issued. Forfeitures of restricted stock are treated as canceled shares.

The table below provides information for restricted stock awards for the three and nine months ended September 30, 2015:
 
Three Months Ended September 30, 2015
 
Nine Months Ended September 30, 2015
 
Number of
Shares
 
Weighted-
Average
Grant Date
Fair Value
Per Share
 
Number of
Shares
 
Weighted-
Average
Grant Date
Fair Value
Per Share
Restricted stock at beginning of period
193,255

 
$
19.22

 
173,222

 
$
19.58

Restricted stock granted
2,589

 
$
24.00

 
55,773

 
$
22.50

Restricted stock vested
(41,367
)
 
$
17.58

 
(59,518
)
 
$
19.08

Restricted stock forfeited
(1,350
)
 
$
17.61

 
(16,350
)
 
$
21.49

Restricted stock at end of period
153,127

 
$
20.64

 
153,127

 
$
20.64