STOCK COMPENSATION PLANS

Under the Company’s 2003 Stock Option Plan, the Company was able to grant options for up to 300,000 shares of common stock to employees, officers, directors and directors emeriti. Under the Company's 2014 Equity Incentive Plan, the Company is able to grant options and awards of restricted stock (with or without performance measures) for up to 352,366 shares of common stock to employees, officers, directors and directors emeriti. Shares issued may be purchased in the open market or may be issued from authorized and unissued shares. The exercise price of each option equals the fair market value of the Company’s common stock on the date of grant. Generally, options and restricted stock vest in 20% annual installments on each of the five anniversaries from the date of the grant, and options generally have a maximum contractual term of ten years from the date of grant. At December 31, 2018, there were 75,116 shares of common stock available which may be awarded as options or restricted stock pursuant to future grant under the 2014 Equity Incentive Plan.

At both December 31, 2018 and 2017, there were no unvested restricted stock awards. There were no restricted stock grants awarded during the three months ended December 31, 2018 and 2017.

Stock option activity for the three months ended December 31, 2018 and 2017 is summarized as follows:



	Three Months Ended December 31, 2018				Three Months Ended December 31, 2017
	Number of Shares		Weighted Average Exercise Price		Number of Shares		Weighted Average Exercise Price
Options outstanding, beginning of period	380,820		$	16.03	380,120		$	13.23
Exercised	(7,400	)	9.55		(6,250	)	9.65
Forfeited	(3,700	)	18.03		(4,300	)	11.66
Options outstanding, end of period	369,720		$	16.14	369,570		$	13.31

The aggregate intrinsic value of options exercised during the three months ended December 31, 2018 and 2017 was $142,000 and $124,000, respectively.

At December 31, 2018, there were 174,850 unvested options with an aggregate grant date fair value of $527,000, all of which the Company assumes will vest. The aggregate intrinsic value of unvested options at December 31, 2018 was $823,000. There were 18,200 options with an aggregate grant date fair value of $164,000 that vested during the three months ended December 31, 2018.

At December 31, 2017, there were 203,250 unvested options with an aggregate grant date fair value of $499,000. There were 29,500 options with an aggregate grant date fair value of $75,000 that vested during the three months ended December 31, 2017.

Additional information regarding options outstanding at December 31, 2018 is as follows:



	Options Outstanding				Options Exercisable
Range of Exercise Prices ($)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
$ 4.01 - 4.55	2,500	$	4.33	1.7	2,500	$	4.33	1.7
5.86 - 6.00	27,850	5.96		3.8	27,850	5.96		3.8
9.00	68,000	9.00		4.8	68,000	9.00		4.8
10.26 - 10.71	118,420	10.57		6.3	66,120	10.56		6.2
15.67	50,700	15.67		7.8	18,900	15.67		7.8
29.69	56,300	29.69		8.8	11,500	29.69		8.8
31.80	45,950	31.80		9.8	—	N/A		N/A
	369,720	$	16.14	6.8	194,870	$	10.90	5.6

The aggregate intrinsic value of options outstanding at December 31, 2018 and 2017 was $3.13 million and $4.89 million, respectively.

As of December 31, 2018, unrecognized compensation cost related to non-vested stock options was $477,000, which is expected to be recognized over a weighted average life of 2.34 years.