(4)Share-Based Compensation

Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant).

The Company issues share-based awards through several plans that are described in detail in the notes to the consolidated financial statements for the year ended December 31, 2014. The compensation cost charged against income for those plans is included in selling, general & administrative expenses as follows (in thousands):

	Three Months Ended
	March 31,
	2015		2014
Total share-based compensation expense	$	210	$	265

Share-based compensation for the three-month period ended March 31, 2014, includes approximately $5,000 representing the fair value of the Company’s common stock granted during the period to the Board of Directors.

The total income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements was approximately $58,000 and $70,000 for the three-month periods ended March 31, 2015 and 2014, respectively.

The following is a summary of stock option activity under all plans for the three-month period ended March 31, 2015:

	Shares Under Options		Weighted Average Exercise Price (per share)		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2014	340,107		$	12.84
Granted	—		—
Exercised	(32,258	)	4.02
Outstanding at March 31, 2015	307,849		$	13.76	3.90	$	2,844
Exercisable at March 31, 2015	240,350		$	11.73	4.04	$	2,691
Vested and expected to vest at March 31, 2015	307,849		$	13.76	3.90	$	2,844

The Company did not grant any stock options during the first quarter of 2015.

During the three-month periods ended March 31, 2015 and 2014, the total intrinsic value of all options exercised (i.e., the difference between the market price on the exercise date and the price paid by the employees to exercise the options) was approximately $600,000 and $2.3 million, respectively, and the total amount of consideration received by the Company from the exercised options was approximately $130,000 and $284,000, respectively. At its discretion, the Company allows option holders to surrender previously owned common stock in lieu of paying the exercise price and withholding taxes. During the three-months ended March 31, 2015, there were no shares surrendered for this purpose. During the three-months ended March 31, 2014, 25,094 shares were surrendered at an average market price of $25.84.

During the three-month periods ended March 31, 2015 and 2014, the Company recognized compensation expense related to stock options granted to directors and employees of approximately $44,000 and $94,000, respectively.

On February 24, 2015, the Company’s Compensation Committee approved the award of $400,000, payable in shares of common stock to the Company’s Chairman, Chief Executive Officer, and President under the 2003 Incentive Plan. The shares will be issued on or before December 31, 2015. During the three-month period ended March 31, 2015, the Company recorded compensation expense associated with the award of $100,000. The Company recorded compensation expense of $100,000 for the three-month period ended March 31, 2014 for a similar award.

The following table summarizes information about Restricted Stock Units (“RSUs”) activity during the three-month period ended March 31, 2015:

	Restricted Stock Units		Weighted Average Award Date Fair Value
Unvested at December 31, 2014	35,088		$	17.87
Awarded	23,975		23.46
Shares vested	(10,426	)	18.35
Unvested at March 31, 2015	48,637		$	19.13

During each of the three-month periods ended March 31, 2015 and 2014, the Company recorded compensation expense related to RSUs of approximately $66,000.

At the Company’s discretion, RSU holders are given the option to net-share settle to cover the required minimum withholding tax, and the remaining amount is converted into the equivalent number of common shares. During the three-month periods ended March 31, 2015 and 2014, 3,405 and 9,878 shares were surrendered at an average market price of $23.15 and $25.88, respectively.

As of March 31, 2015, the Company had approximately $1.3 million of unrecognized compensation

expense, which is expected to be recognized over a period of 4.0 years.