Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v2.4.1.9
Share-Based Compensation
 3 Months Ended
Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation

Note 13 — Share-Based Compensation

Share-Based Compensation Expense

For the three months ended March 31, 2015 and 2014, share-based compensation expenses were $528,000 and $605,000, respectively. Net tax benefits recognized from stock option exercises and restricted stock awards vesting were $30,000 and $112,000 for the three months ended March 31, 2015 and 2014, respectively.

Unrecognized Share-Based Compensation Expense

As of March 31, 2015, unrecognized share-based compensation expense was as follows:

 

            Average Expected  
     Unrecognized      Recognition  
     Expense      Period  
     (In thousands)  

Stock option awards

    $ 1,137         1.6 years   

Restricted stock awards

      2,360         2.0 years   
  

 

 

     

Total unrecognized share-based compensation expense

 $ 3,497      1.8 years   
  

 

 

     

The table below provides stock option information for the three months ended March 31, 2015:

 

            Weighted-      Weighted-      Aggregate  
            Average      Average      Intrinsic  
            Exercise      Remaining      Value of  
     Number of      Price Per      Contractual      In-the-Money  
     Shares      Share      Life      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 exercised

      (19,581 )     $ 14.20         8.0 years      

Options forfeited

      (501 )     $ 12.54         7.7 years      

Options expired

      (125 )     $ 144.00         1.1 years      
  

 

 

           

Options outstanding at end of period

   583,665    $ 24.09      8.0 years    $ 2,383 (2) 
  

 

 

           

Options exercisable at end of period

   205,058    $ 35.12      6.8 years    $ 1,158 (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 $21.15 as of March 31, 2015, over the exercise price, multiplied by the number of options.

There were 19,581 stock options exercised during the three months ended March 31, 2015, compared to 15,195 stock options exercised during the same period in 2014.

Restricted Stock Awards

Restricted stock awards under the Company’s 2007 and 2013 Equity Compensation Plans typically vest over three to five 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 cancelled shares.

 

The table below provides information for restricted stock awards for the three months ended March 31, 2015:

 

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

Restricted stock at beginning of period

      173,222       $ 19.58   

Restricted stock granted

      3,850       $ 20.33   

Restricted stock vested

      (2,000 )     $ 24.45   
  

 

 

     

Restricted stock at end of period

   175,072    $ 19.55