Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

4. Stock-Based Compensation

No awards were granted during the six-month period ending June 30, 2018. As of June 30, 2018, there was $119,000 of total unrecognized compensation cost related to non-vested options granted in 2017 under the 2014 Equity Incentive Plan, which will be fully amortized by December 31, 2018. Compensation costs related to stock options amounted to $118,000 and $46,000 during the six-month periods ended June 30, 2018 and 2017, respectively.

A summary of the Company’s stock option activity for the six-month period ended June 30, 2018 is as follows, after adjusting for the 50% stock dividend declared on August 8, 2017:



		Weighted
		Average Exercise		Weighted Average		Aggregate
		Price		Remaining		Intrinsic Value
	Options	Per Share		Contractual Term		($000)

Outstanding at January 1, 2018	212,725	$	20.76	6.1	Yrs.	$	2,604
Granted	-		-	-			-
Exercised	(12,650)		18.41	4.8	Yrs.		160
Forfeited	(750)		32.81	9.5	Yrs.		25
Outstanding at June 30, 2018	199,325	$	20.86	5.6	Yrs.	$	1,932

Exercisable at June 30, 2018	165,325	$	18.41	4.8	Yrs.	$	1,932

Intrinsic value represents the amount by which the market price of the stock on the measurement date exceeded the exercise price of the option. The stock price was $36.02 as of June 30, 2018 and $33.00 as of December 31, 2017.

A summary of the Company’s restricted stock activity for the six-month periods ended June 30, 2018 and 2017 is as follows, after adjusting for the 50% stock dividend declared on August 8, 2017:


	2018			2017
			Weighted-Average			Weighted-Average
	Number of		Grant Date	Number of		Grant Date
	Restricted Stock		Fair Value	Restricted Stock		Fair Value
Non-vested, January 1,	30,415	$	24.46	28,035	$	20.64
Granted	-		-	-		-
Vested	-		-	-		-
Forfeited	-		-	-		-
Non-vested, June 30,	30,415	$	24.46	28,035	$	20.64

The expected future compensation expense relating to the 30,415 shares of non-vested restricted stock outstanding as of June 30, 2018 is $642,000. This cost will be recognized over the remaining vesting period of 4.5 years. Compensation costs related to restricted stock amounted to $102,000 and $71,000 during the six-month periods ended June 30, 2018 and 2017, respectively.