Stock-Based Compensation

12 Months Ended

Dec. 31, 2014

The exercise price of stock options granted under this plan, both incentive and non-qualified, cannot be less than the fair market value of the common stock on the date that the option is granted. The maximum term for an option granted under this plan is ten years and options granted may be subject to a vesting schedule. All of the non-qualified stock options granted under the plan had a ten year term and were subject to a vesting period. The following table summarizes options outstanding at December 31, 2014, 2013, and 2012:



	2014						2013				2012
	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding, beginning of year	10,000		$	21.55			20,000		$	21.59	22,000		$	21.59
Granted	—		—				—		—		—		—
Exercised	(927	)	21.55				(3,872	)	21.63		—		—
Forfeited	(9,073	)	21.55				(6,128	)	21.63		(2,000	)	21.59
Outstanding, end of year	—		$	—			10,000		$	21.55	20,000		$	21.59

Exercisable, end of year	—		$	—	$	—	10,000		$	21.55	20,000		$	21.59
Weighted average fair value of options granted during the year			$	—					$	—			$	—

The aggregate intrinsic value in the table is equal to the amount that would have been received by the option holders had all options been exercised on December 31, 2014. It is derived from the amount by which the current market value of the underlying stock exceeds the exercise price of the option. This amount fluctuates in relation to the market value of the Company’s stock.

Restricted Stock provides grantees with rights to shares of common stock upon completion of a service period or achievement of Company performance measures. During the restriction period, all shares are considered outstanding and dividends are paid to the grantee. Outside directors are periodically granted restricted shares which vest over a period of less than six months. During 2014, executive officers were granted restricted shares which vest over a three year service period and restricted shares which vest based on meeting performance measures over a three year period. The following table presents the activity for Restricted Stock for the years ended December 31, 2014, 2013 and 2012:



	Twelve Months Ended
	December 31,
	2014				2013				2012
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Nonvested, beginning of period	17,050		$	19.92	16,500		$	16.53	13,700		$	16.11
Granted	14,900		23.50		14,900		22.06		14,500		17.87
Vested	(14,009	)	20.75		(13,699	)	18.30		(10,963	)	17.79
Forfeited	(2,790	)	22.11		(651	)	16.75		(737	)	16.25
Nonvested, end of period	15,151		$	22.27	17,050		$	19.92	16,500		$	16.53

The Company recognizes compensation expense over the restricted period. Compensation expense was $290 thousand, $305 thousand, and $242 thousand during December 31, 2014, 2013, and 2012, respectively. The total grant date fair value of Restricted Stock which vested was $291 thousand and $251 thousand for the years ended December 31, 2014 and 2013, respectively. Unrecognized compensation cost related to unvested Restricted Stock was $64 thousand at December 31, 2014. This amount is expected to be recognized over a weighted average period of one year.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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