NOTE F — STOCK COMPENSATION

Option Awards

A summary of the Company’s stock option activity and related information for the six months ended June 30, 2016 is as follows:


	Options			Weighted- average exercise price		Weighted- average remaining contractual life (years)		Aggregate intrinsic value
Options outstanding, January 1, 2016		2,242,202		$	14.28
Grants		56,850			15.69
Exercises		(138,443	)		8.60
Cancellations		(23,375	)		15.32
Expirations		(218,100	)		27.93

Options outstanding, June 30, 2016		1,919,134			13.16		5.2	$	4,879,600

Options exercisable, June 30, 2016		1,566,326		$	12.45		4.6	$	4,702,600

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 June 30, 2016. 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 June 30, 2016 and the exercise price.

The total intrinsic value of stock options exercised for the six month periods ended June 30, 2016 and 2015 was $0.9 million and $0.6 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 June 30, 2016, before the effect of income taxes, was $2.2 million and is expected to be recognized over a weighted-average period of 2.0 years.

Restricted Stock

A summary of the Company’s restricted stock activity and related information for the six months ended June 30, 2016 is as follows:


	Restricted Shares			Weighted- average grant date fair value
Nonvested restricted shares, January 1, 2016		101,435		$	14.77
Grants		109,170			15.64
Vested		(42,972	)		14.84
Cancellations		(2,000	)		14.84

Nonvested restricted shares, June 30, 2016		165,633		$	15.33


Total unrecognized compensation expense remaining	$	2,347,300
Weighted-average years expected to be recognized over		3.1

The total fair value of restricted stock that vested during the six months ended June 30, 2016 was $658,300.

Performance shares

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 the end of the performance period, 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 six months ended June 30, 2016 is as follows:


	Performance- based awards ⁽¹⁾			Weighted- average grant date fair value
Nonvested performance-based awards, January 1, 2016		66,150		$	14.84
Grants		82,000			15.69
Cancellations		(1,691	)		14.84

Nonvested performance-based awards, June 30, 2016		146,459		$	15.32


Total unrecognized compensation expense remaining	$	1,734,900
Weighted-average years expected to be recognized over		2.1

(1)	Represents the target number of shares to be issued for each performance-based award.

The Company recognized total stock compensation expense of $0.5 million for the three months ended June 30, 2016, of which $0.2 million represents stock option compensation expense and $0.3 million represents restricted stock and performance based compensation expense. For the six months ended June 30, 2016 the Company recognized total stock compensation expense of $1.3 million, of which $0.7 million represents stock option compensation expense, $0.6 million represents restricted stock and performance based compensation expense and $32,000 represents stock awards granted in 2016.

The Company recognized total stock compensation expense of $0.8 million for the three months ended June 30, 2015, of which $0.6 million represents stock option compensation expense, $0.2 million represents restricted stock and performance based compensation expense. For the six months ended June 30, 2015 the Company recognized total stock compensation expense of $1.5 million, of which $1.2 million represents stock option compensation expense, $0.3 million represents restricted stock and performance based compensation expense and $53,000 represents stock awards granted in 2015.

At June 30, 2016, there were 403,279 shares available for awards that could be granted under the Company’s Amended and Restated 2000 Long-Term Incentive Plan.