| Share-Based Compensation |
Note 13 — Share-Based Compensation
Share-Based Compensation Expense
For the three months ended September 30, 2014 and 2013,
share-based compensation expense was $695,000 and $197,000,
respectively, and the related tax benefits on non-qualified stock
options were $317,000 and $0, respectively. For the nine months
ended September 30, 2014 and 2013, share-based compensation
expense was $1.7 million and $387,000, respectively, and the
related tax benefits on non-qualified stock options were $500,000
and $32,000, respectively.
Unrecognized Share-Based Compensation Expense
As of September 30, 2014, unrecognized share-based
compensation expense was as follows:
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Unrecognized
Expense |
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Average Expected
Recognition
Period |
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(In
thousands) |
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Stock option awards
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$ |
1,490 |
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|
2.2 years |
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Restricted stock awards
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|
2,822 |
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2.6 years |
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Total unrecognized share-based compensation expense
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$ |
4,312 |
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2.4 years |
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The table below provides stock option information for the three
months ended September 30, 2014:
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Number of
Shares |
|
|
Weighted-
Average
Exercise
Price Per
Share |
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|
Weighted-
Average
Remaining
Contractual
Life |
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Aggregate
Intrinsic
Value of
In-the-
Money
Options |
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(In thousands,
except share and per share data) |
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Options outstanding at beginning of period
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|
581,913 |
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$ |
24.32 |
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8.6 years |
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|
$ |
2,168 |
(1) |
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Options granted
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|
28,000 |
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|
$ |
20.57 |
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10.0 years |
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Options exercised
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(687 |
) |
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$ |
12.54 |
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8.2 years |
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Options forfeited
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(1,876 |
) |
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$ |
12.54 |
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8.2 years |
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Options expired
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(2,875 |
) |
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$ |
109.71 |
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3.3 years |
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Options outstanding at end of period
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604,475 |
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$ |
23.79 |
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8.5 years |
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$ |
2,188 |
(2)
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Options exercisable at end of period
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194,757 |
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$ |
37.21 |
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7.2 years |
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$ |
871 |
(2) |
| (1) |
Intrinsic value represents the
excess of the closing stock price on the last trading day of the
period, which was $21.08 as of June 30, 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 $20.16 as of September 30, 2014, over the
exercise price, multiplied by the number of options. |
The table below provides stock option information for the nine
months ended September 30, 2014:
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Number of
Shares |
|
|
Weighted-
Average
Exercise
Price Per
Share |
|
|
Weighted
Average
Remaining
Contractual
Life |
|
|
Aggregate
Intrinsic
Value of
In-the-
Money
Options |
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| |
|
(In thousands,
except share and per share data) |
|
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Options outstanding at beginning of period
|
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|
546,595 |
|
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$ |
28.09 |
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8.4 years |
|
|
$ |
3,384 |
(1) |
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Options granted
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|
133,000 |
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$ |
21.60 |
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9.7 years |
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Options exercised
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(34,382 |
) |
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$ |
12.54 |
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7.9 years |
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Options forfeited
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(9,751 |
) |
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$ |
12.54 |
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8.2 years |
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Options expired
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(30,987 |
) |
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$ |
106.26 |
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|
.5 years |
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Options outstanding at end of period
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|
604,475 |
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$ |
23.79 |
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8.5 years |
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$ |
2,188 |
(2)
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Options exercisable at end of period
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|
194,757 |
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$ |
37.21 |
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7.2 years |
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$ |
871 |
(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 $20.16 as of September 30, 2014, over the
exercise price, multiplied by the number of options. |
There were 687 and 34,382 stock options exercised during the three
and nine months ended September 30, 2014, compared to 38,437
and 40,678 stock options exercised during the same periods in
2013.
Restricted Stock Awards
Restricted stock awards granted under the 2013 Equity Compensation
Plan, which replaced the 2007 Equity Compensation Plan, generally
become fully vested after three to five years of continued
employment from the date of grant. Hanmi Financial becomes entitled
to an income tax deduction in an amount equal to the taxable income
reported by the holders of the restricted stock awards when the
restrictions are released and the shares are issued. Restricted
stock awards are forfeited if officers and employees terminate
prior to the lapsing of restrictions. Forfeitures of restricted
stock awards are treated as cancelled shares.
The table below provides information for restricted stock awards
for the three and nine months ended September 30, 2014:
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Three Months Ended |
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Nine Months Ended |
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Number of
Shares |
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Weighted-
Average
Grant Date
Fair Value
Per Share |
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Number of
Shares |
|
|
Weighted-
Average
Grant Date
Fair Value
Per Share |
|
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Restricted stock at beginning of period
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166,332 |
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$ |
18.46 |
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|
116,082 |
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$ |
16.43 |
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Restricted stock granted
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32,720 |
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$ |
20.86 |
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|
99,068 |
|
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$ |
21.93 |
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Restricted stock vested
|
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(36,331 |
) |
|
$ |
16.46 |
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(51,429 |
) |
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$ |
17.53 |
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Restricted stock forfeited
|
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|
— |
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$ |
— |
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(1,000 |
) |
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$ |
22.25 |
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Restricted stock at end of period
|
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|
162,721 |
|
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$ |
19.39 |
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|
162,721 |
|
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$ |
19.39 |
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