SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
100
13.
SHAREHOLDERS’ EQUITY
(Continued)
The maximum number of shares subject to issuance under the 2007 Plan was originally 1,500,000 shares
of the Company’s authorized but unissued common stock, covering both restricted stock awards and stock
options. The number subject to issuance under the 2007 Plan had declined to 788,620 at December 31,
2014, due to stock options already granted under the plan net of any canceled options that were returned to
the pool available for issuance.
All options granted under the 2007 Plan have been or will be granted at an exercise price of not less than
100% of the fair market value of the stock on the date of grant, exercisable in installments as provided in
individual stock option agreements. In the event of a “Change in Control” as defined in the 2007 Plan, all
outstanding options shall become exercisable in full (subject to certain notification requirements), and
shall terminate if not exercised within a specified period of time unless such options are assumed by the
successor corporation or substitute options are granted. Options also terminate in the event an optionee
ceases to be employed by or to serve as a director of the Company or its subsidiaries, and the vested
portion thereof must be exercised within 30 days after such cessation of employment or service.
A summary of the Company’s stock option activity, including options from the 1998 Plan, follows (shares
in thousands, except exercise price):
Outstanding,
beginning of year 746 $ 14.65
927 $ 14.16
810 $ 14.97
Exercised
(95) $ 11.28
(111) $ 9.87
(5) $ 9.45
Granted
50 $ 16.35
- $ -
189 $ 10.21
Canceled
(69) $ 14.20
(70) $ 15.75
(67) $ 13.08
Outstanding,
end of year
632 $ 15.34
$ 2,850
746 $ 14.65
927 $ 14.16
Exercisable,
end of year
(2)
530 $ 16.25
$ 2,122
542 $ 16.30
504 $ 16.07
(1)
The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value
(the amount by which the current market value of the underlying stock exceeds the exercise price of the option)
that would have been received by the option holders had all option holders exercised their options on
December 31, 2014. This amount changes based on changes in the market value of the Company's stock.
(2)
The weighted average remaining contractual life of stock options outstanding and exercisable on
December 31, 2014 was 5.40 years and 5.07 years, respectively.
2014
2013
2012
Shares
Weighted Average
Exercise Price
Aggregate
Intrinsic
Value
(1)
Shares
Weighted Average
Exercise Price
Shares
Weighted Average
Exercise Price
Information related to stock options during each year follows:
2014
2013
2012
Weighted-average grant-date fair value per share
$ 2.67 $ - $ 3.86
Total intrinsic value of stock options exercised
$ 468,000 $ 605,000 $ 9,000
Total fair value of stock options vested
$ 367,000 $ 583,000 $ 517,000
Cash received from the exercise of 95,330 shares was $1,076,000 for the period ended December 31, 2014
with a related tax benefit of $164,000.
