18. Share-based Payments

At March 31, 2017, there were 342,000 shares of the Company’s common stock are reserved for grants to the Company’s non-employee directors under the 2014 Non-Employee Director Incentive Award Plan (the “2014 Plan”). Under the 2014 Plan, (i) 37,383 and 16,206 of restricted shares were issued and (ii) 263,078 and 308,411 shares of common stock were available for grant under this plan at March 31, 2017 and 2016, respectively.

At March 31, 2017, there were 2,750,000 shares of common stock reserved for grant to all employees of the Company under the 2010 Incentive Award Plan (the “2010 Plan”). Under the 2010 Plan, (i) 88,894 and 137,321 shares of restricted stock, (ii) options to purchase 898,009 and 740,716 shares of common stock were outstanding, and (iii) 688,765 and 964,039 shares of common stock were available for grant at March 31, 2017 and 2016, respectively.

In addition, at March 31, 2017 and 2016, options to purchase 128,000 and 154,000 shares of common stock, respectively, were outstanding under the 2004 Non-Employee Director Stock Option Plan and options to purchase 10,350 and 89,350 shares of common stock, respectively, were outstanding under the 2003 Long-Term Incentive Plan. No options remain available for grant under these plans.

The shares of common stock issued upon exercise of a previously granted stock option are considered new issuances from shares reserved for issuance upon adoption of the various plans. The Company requires that the option holders provide a written notice of exercise to the stock plan administrator and payment for the shares prior to issuance of the shares.

Stock Options

The following is a summary of stock option activity during the year:

	Number of Shares			Weighted Average Exercise Price
Outstanding at March 31, 2016		984,066		$	11.98
Granted		186,924		$	28.70
Exercised		(133,731	)	$	12.43
Forfeited		(900	)	$	29.50
Outstanding at March 31, 2017		1,036,359		$	14.92

At March 31, 2017, options to purchase 284,613 shares of common stock were unvested at the weighted average exercise price of $13.04.

Based on the market value of the Company’s common stock at March 31, 2017, 2016, and 2015, the pre-tax intrinsic value of options exercised was $2,477,000, $14,002,000, and $1,955,000 respectively. The total fair value of stock options vested during the years ended March 31, 2017, 2016, and 2015 was $1,290,000, $905,000, and $978,000, respectively.

The following summarizes information about the options outstanding at March 31, 2017:

		Options Outstanding								Options Exercisable
Range of Exercise price		Shares		Weighted Average Exercise Price		Weighted Average Remaining Life In Years		Aggregate Intrinsic Value		Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value
$	4.17 to $6.25		74,000	$	5.29		1.90	$	1,883,000		74,000	$	5.29	$	1,883,000
$	6.46 to $7.43		359,167		6.48		5.69		8,710,000		359,167		6.48		8,710,000
$	9.32 to $19.94		235,450		9.96		5.83		4,891,000		235,450		9.96		4,891,000
$	22.93 to $34.17		367,742		28.28		8.60		900,000		83,129		26.55		348,000
			1,036,359	$	14.92		6.48	$	16,384,000		751,746	$	9.67	$	15,832,000

The aggregate intrinsic values in the above table represent the pre-tax value of all in-the-money options if all such options had been exercised on March 31, 2017 based on the Company’s closing stock price of $30.73 as of that date.

At March 31, 2017, there was $2,666,000 of total unrecognized compensation expense from stock-based compensation granted under the plans, which is related to non-vested shares. The compensation expense is expected to be recognized over a weighted average vesting period of 1.9 years.

Restricted Stock Units (“RSUs”)

During the years ended March 31, 2017 and 2016, the Company granted 62,637 and 49,702 shares of RSUs, respectively, with an estimated grant date fair value of $1,774,000 and $1,566,000, respectively, which was based on the closing market price on the date of grant. The fair value related to these awards is recognized as compensation expense over the vesting period. These awards generally vest in three equal installments beginning each anniversary from the grant date, subject to continued employment. Upon vesting, these awards may be net share settled to cover the required withholding tax with the remaining amount converted into an equivalent number of shares of common stock. Total shares withheld during the years ended March 31, 2017 and 2016 were 36,586 and 29,003, respectively, and was based on the value of these awards as determined by the Company’s closing stock price on the vesting date.

The following is a summary of changes in the status of non-vested RSUs during the year:

	Number of Shares			Weighted Average Grant Date Fair Value
Non-vested at March 31, 2016		153,527		$	22.28
Granted		62,367		$	28.44
Vested		(89,617	)	$	18.14
Forfeited		-		$	-
Non-vested at March 31, 2017		126,277		$	28.26

As of March 31, 2017, there was $2,333,000 of unrecognized compensation expense related to these awards, which will be recognized over the remaining vesting period of approximately 1.6 years.