NOTE G — STOCK COMPENSATION

On June 10, 2015, the stockholders of the Company approved the Company’s Amended and Restated 2000 Long-Term Incentive Plan (the “Plan”). The Plan revised the terms and conditions of the 2000 Long-Term Incentive Plan to increase the shares available for grant under the plan by 650,000 shares, permit certain awards under the Plan to continue to qualify for the exemption from the $1.0 million deduction limit under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), and include and clarify several features that promote good governance.

At September 30, 2015, there were 656,210 shares available for awards that could be granted under the Company’s Amended and Restated 2000 Long-Term Incentive Plan.

Option Awards

A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2015 is as follows:


	Options			Weighted- average exercise price		Weighted- average remaining contractual life (years)		Aggregate intrinsic value
Options outstanding, January 1, 2015		2,326,627		$	14.19
Grants		29,600			15.23
Exercises		(110,375	)		8.84
Cancellations		(30,750	)		15.62
Expirations		(23,900	)		27.23

Options outstanding, September 30, 2015		2,191,202			14.31		5.3	$	4,798,000

Options exercisable, September 30, 2015		1,670,910		$	13.82		4.5	$	4,422,000

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had all option holders exercised their stock options on September 30, 2015. The intrinsic value is calculated for each in-the-money stock option as the difference between the closing price of the Company’s common stock on September 30, 2015 and the exercise price.

The total intrinsic value of stock options exercised for the nine months ended September 30, 2015 and 2014 was $639,000 and $3.0 million, respectively. The intrinsic value of a stock option that is exercised is calculated at the date of exercise.

Total unrecognized stock option compensation expense at September 30, 2015, before the effect of income taxes, was $3.4 million and is expected to be recognized over a weighted-average period of 2.1 years.

Restricted Stock

A summary of the Company’s restricted stock activity and related information for the nine months ended September 30, 2015 is as follows:


	Restricted Shares			Weighted- average grant date fair value
Nonvested restricted shares, January 1, 2015		26,511		$	15.86
Grants		95,073			14.84
Vested		(24,649	)		15.97

Nonvested restricted shares, September 30, 2015		96,935		$	14.84


Total unrecognized compensation expense remaining	$	1,193,000
Weighted-average years expected to be recognized over		2.8

The total fair value of restricted stock that vested during the nine months ended September 30, 2015 was $374,000.

Performance shares

During the nine months ended September 30, 2015, awards for performance shares were granted under the Plan. Each performance award represents the right to receive up to 150% of the target number of shares of common stock. The number of shares of common stock earned will be determined based on the attainment of specified performance goals by December 31, 2017, as determined by the Compensation Committee. The shares are subject to the terms and conditions of the Plan.

A summary of the Company’s performance-based award activity and related information for the nine months ended September 30, 2015 is as follows:


	Performance- based awards		Weighted- average grant date fair value
Nonvested performance-based awards, January 1, 2015		—	$	—
Grants (at target)		66,650		14.84

Nonvested performance-based awards, September 30, 2015		66,650	$	14.84


Total unrecognized compensation expense remaining	$	831,000
Weighted-average years expected to be recognized over		2.3

The Company recognized total stock compensation expense of $0.8 million for the three months ended September 30, 2015, of which $0.5 million represents stock option compensation expense and $0.3 million represents restricted stock and performance based compensation expense. For the nine months ended September 30, 2015 the Company recognized total stock compensation expense of $2.3 million, of which $1.7 million represents stock option compensation expense, $0.5 million represents restricted stock and performance based stock compensation expense and $53,000 represents stock awards granted in 2015. Total stock compensation expense for the three and nine months ended September 30, 2014 was $680,000 and $2.1 million, respectively, of which $0.6 million and $1.9 million, respectively, represents stock option compensation expense, and $83,000 and $0.2 million, respectively, represents restricted stock compensation expense.