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Stock Options

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Incentive Stock Option Plan

On May 7, 2015, the stockholders of the Company approved the 2015 Incentive Stock Option Plan (“2015 ISO Plan”) and the Company reserved 400,000 shares of common stock for options to be issued under the 2015 ISO Plan. Each option becomes vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year.

We also maintain other incentive option plans that have expired, under which previously granted awards remain outstanding. No additional grants may be awarded under these plans.

Following is a summary of activity in the Incentive Stock Option Plans for the periods indicated:


	2018				2017					2016
	Shares	Exercise Price*		Shares	Exercise Price*		Shares	Exercise Price*
Options outstanding at beginning of year	172,875	$	43.91	220,820	$	37.39	254,195	$	34.64
Granted	9,500	92.50		10,750	83.99		21,000	54.87
Exercised	(41,205)	34.89		(54,945)	24.83		(43,775)	26.59
Canceled	(1,000)	54.49		(3,750)	54.57		(10,600)	50.68
Options outstanding at end of year	140,170	49.78		172,875	43.91		220,820	37.39
Options exercisable at end of year	96,320	$	41.56	111,875	$	36.44	136,220	$	29.66
Options available for grant at end of year	336,450			344,950			353,450

*Weighted Averages

Options outstanding and exercisable at December 31, 2018 were as follows:


Qualified Stock Options	Options Outstanding								Options Exercisable
	Shares	Remaining Contractual Life (yrs)*				Exercise Price*	Shares		Exercise Price*
Range of Exercise Price
$11.45 - $24.69	6,000		0.53	$	13.66	6,000	$	13.66
$26.45 - $42.70	54,520		3.58	$	35.83	54,520	$	35.83
$49.44 - $83.99	70,150		6.56	$	57.92	35,800	$	54.96
$92.50 - $92.50	9,500		9.36	$	92.50	—	$	—
Total	140,170					96,320

*Weighted Averages

The weighted-average grant-date fair values of options granted during 2018, 2017, and 2016 were $38.77, $36.00 and $27.48, respectively. Stock option expense was $482,000, $597,000 and $787,000 for years ending 2018, 2017, and 2016, respectively. As of December 31, 2018, there was $816,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years.

Equity Incentive Plan

Under the Company's 2009 Equity Incentive Plan the Company reserved 400,000 shares of common stock for options to purchase shares of common stock may be granted to non-employee directors. Options become vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year.


	2018	2017	2016
Options available for grant at end of year	146,075	176,294	207,608

We also maintain other incentive option plans that have expired, under which previously granted awards remain outstanding. No additional grants may be awarded under these plans.

Non-Qualified Options

Following is a summary of activity in the Non-Qualified Stock Option Plans for the periods indicated:


	2018				2017					2016
	Shares	Exercise Price*		Shares	Exercise Price*		Shares	Exercise Price*
Options outstanding at beginning of year	67,000	$	42.43	112,400	$	34.48	127,300	$	32.05
Granted	—	—		—	—		—	—
Exercised	(26,800)	41.61		(45,400)	22.73		(14,900)	13.73
Canceled	—	—		—	—		—	—
Options outstanding at end of year	40,200	42.99		67,000	42.43		112,400	34.48
Options exercisable at end of year	34,400	$	41.21	50,400	$	39.86	85,000	$	29.61

*Weighted Averages

Options outstanding and exercisable as of December 31, 2018 were as follows:


Non-Qualified Stock Options	Options Outstanding								Options Exercisable
	Shares	Remaining Contractual Life (yrs)*				Exercise Price*	Shares		Exercise Price*
Range of Exercise Price
$11.45 - $24.69	8,000		0.36	$	11.45	8,000	$	11.45
$26.45 - $42.70	3,200		2.36	26.45		3,200	26.45
$49.44 - $83.99	29,000		5.37	$	53.51	23,200	$	53.51
Total	40,200					34,400

*Weighted Averages

There were no options granted in 2016, 2017 or 2018. Stock option expense was $22,000, $22,000 and $27,000 for years ending 2018, 2017, and 2016, respectively. As of December 31, 2018, there was $8,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years.

During 2018, 2017, and 2016, 26,800, 45,400, and 14,900 non-qualified options were exercised, respectively, $1,115,000, $1,032,000, and $205,000 of cash receipts were received, respectively, and tax deductions of zero, zero, and $657,000 were realized, respectively, for the tax deductions from option exercises.

Restricted Stock Awards/Units

Following is a summary of activity in the Restricted Stock Awards for the periods indicated:


	2018				2017					2016
	Shares	Grant-Date Fair Value*		Shares	Grant-Date Fair Value*		Shares	Grant-Date Fair Value*
Options outstanding at beginning of year	63,052	$	70.08	45,621	$	54.58	32,616	$	53.31
Granted	35,300	92.50		33,620	84.34		27,440	55.17
Exercised	(22,266)	66.91		(16,189)	56.03		(11,909)	52.67
Canceled	(450)	83.99		—	—		(2,526)	53.57
Options outstanding at end of year	75,636	81.39		63,052	70.08		45,621	54.58

*Weighted Averages

Restricted stock awards vest 25% after one year following the award date and for an additional 25% of total awarded shares each succeeding year until fully vested. The weighted-average remaining contractual life in years for 2018, 2017, and 2016 was 2.53, 2.69 and 2.89, respectively. Compensation expense was $1,946,000, $1,250,000 and $600,000 for years ending 2018, 2017, and 2016, respectively. As of December 31, 2018, there was $4,825,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of four years.