STOCK COMPENSATION

3 Months Ended

Mar. 31, 2017

NOTE F — STOCK COMPENSATION

Option Awards

A summary of the Company’s stock option activity and related information for the three months ended March 31, 2017 is as follows:


	Options			Weighted- average exercise price		Weighted- average remaining contractual life (years)		Aggregate intrinsic value
Options outstanding, January 1, 2017		1,775,400		$	13.44
Grants		75,000			16.60
Exercises		(6,000	)		15.30
Cancellations		(11,200	)		16.06

Options outstanding, March 31, 2017		1,833,200			13.54		4.6	$	12,092,000

Options exercisable, March 31, 2017		1,463,967		$	12.84		3.9	$	10,695,000

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 March 31, 2017. 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 March 31, 2017 and the exercise price.

The total intrinsic value of stock options exercised for the three month periods ended March 31, 2017 and 2016 was $27,000 and $275,000, 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 March 31, 2017, before the effect of income taxes, was $1.5 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 three months ended March 31, 2017 is as follows:


	Restricted Shares			Weighted- average grant date fair value
Non-vested restricted shares, January 1, 2017		161,824		$	15.35
Grants		10,000			16.60
Vested		(1,674	)		12.52
Cancellations		(188	)		14.84

Non-vested restricted shares, March 31, 2017		169,962		$	15.45

Total unrecognized compensation expense remaining	$	1,793,000
Weighted-average years expected to be recognized over		2.7

The total fair value of restricted stock that vested during the three months ended March 31, 2017 was $28,000.

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 three months ended March 31, 2017 is as follows:


	Performance- based stock awards ⁽¹⁾			Weighted- average grant date fair value
Non-vested performance-based awards, January 1, 2017		145,962		$	15.32
Cancellations		(250	)		14.84

Non-vested performance-based awards, March 31, 2017		145,712		$	15.32

Total unrecognized compensation expense remaining	$	1,143,000
Weighted-average years expected to be recognized over		1.5

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

The Company recognized total stock compensation expense of $0.8 million for the three months ended March 31, 2017, of which $0.4 million represents stock option compensation expense and $0.4 million represents restricted stock and performance based compensation expense. For the three months ended March 31, 2016, the Company recognized total stock compensation expense of $0.8 million, of which $0.5 million represents stock option compensation expense, $0.3 million represents restricted stock and performance based compensation expense and $32,000 represents stock awards granted in 2016.

At March 31, 2017, there were 341,115 shares available for awards that could be granted under the Company’s Amended and Restated 2000 Long-Term Incentive Plan.

- 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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