NOTE H — STOCK COMPENSATION

Option Awards

A summary of the Company’s stock option activity and related information for the three months ended March 31, 2018 is as follows:


	Options			Weighted- average exercise price		Weighted- average remaining contractual life (years)		Aggregate intrinsic value
Options outstanding, January 1, 2018		1,456,200		$	13.64
Grants		150,000			13.75
Cancellations		(6,625	)		18.23
Expirations		(3,750	)		15.41

Options outstanding, March 31, 2018		1,595,825			13.63		4.8	$	1,393,000

Options exercisable, March 31, 2018		1,246,923		$	13.04		3.8	$	1,393,000

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, 2018. 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, 2018 and the exercise price.

Total unrecognized stock option compensation expense at March 31, 2018, before the effect of income taxes, was $1.4 million and is expected to be recognized over a weighted-average period of 2.5 years.

Restricted Stock

A summary of the Company’s restricted stock activity and related information for the three months ended March 31, 2018 is as follows:


	Restricted Shares			Weighted- average grant date fair value
Non-vested restricted shares, January 1, 2018		219,317		$	17.12
Grants		75,944			13.65
Cancellations		(5,375	)		16.82

Non-vested restricted shares, March 31, 2018		289,886		$	16.22

Total unrecognized compensation expense remaining	$	3,486,000
Weighted-average years expected to be recognized over		2.6

No restricted stock vested during the three months ended March 31, 2018.

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 Company’s Amended and Restated 2000 Long-Term Incentive Plan (the “Plan”).

A summary of the Company’s performance-based award activity and related information for the three months ended March 31, 2018 is as follows:


	Performance- based stock awards ⁽¹⁾			Weighted- average grant date fair value
Non-vested performance-based awards, January 1, 2018		228,892		$	16.49
Cancellations		(7,293	)		15.90
Vested		(58,888	)		14.84

Non-vested performance-based awards, March 31, 2018		162,711		$	17.11

Total unrecognized compensation expense remaining	$	1,419,000
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 total fair value of performance-based awards that vested during the three months ended March 31, 2018 was $792,000.

The Company recognized total stock compensation expense of $0.8 million for the three months ended March 31, 2018, of which $0.2 million represents stock option compensation expense and $0.6 million represents restricted stock and performance based compensation expense. 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.

At March 31, 2018, there were 374,558 shares available for awards that could be granted under the Plan, assuming maximum performance of performance-based awards.