NOTE H— STOCK COMPENSATION

On June 28, 2018, the shareholders of the Company approved an amendment and restatement of the Company’s Amended and Restated 2000 Long-Term Incentive Plan (the “Plan”). The amendment and restatement of the Plan revised the terms and conditions of the Plan to, among other things, increase the shares available for grant under the Plan by 900,000 shares. As of June 30, 2018, there were 944,419 shares available for the grant of awards under the Plan.

Option Awards

A summary of the Company’s stock option activity and related information for the six months ended June 30, 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		205,750			13.56
Cancellations		(9,250	)		17.95
Expirations		(13,875	)		17.43

Options outstanding, June 30, 2018		1,638,825			13.57		4.7	$	1,512,990

Options exercisable, June 30, 2018		1,312,395		$	13.32		3.7	$	1,512,990

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, 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 June 30, 2018 and the exercise price.

Total unrecognized stock option compensation expense at June 30, 2018, before the effect of income taxes, was $1.4 million and is expected to be recognized over a weighted-average period of 2.6 years.

Restricted Stock

A summary of the Company’s restricted stock activity and related information for the six months ended June 30, 2018 is as follows:


	Restricted Shares			Weighted- average grant date fair value
Non-vested restricted shares, January 1, 2018		219,317		$	17.12
Grants		223,759			13.25
Vested		(85,177	)		17.23
Cancellations		(6,188	)		16.87

Non-vested restricted shares, June 30, 2018		351,711		$	14.64

Total unrecognized compensation expense remaining	$	4,935,000
Weighted-average years expected to be recognized over		2.5

The fair value of restricted stock that vested during the six months ended June 30, 2018 was $1.0 million.

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, as determined by the Compensation Committee, by the end of the performance period. 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, 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
Grants		144,175			13.05
Vested		(58,888	)		14.84
Cancellations		(8,043	)		16.05

Non-vested performance-based awards, June 30, 2018		306,136		$	15.20

Total unrecognized compensation expense remaining	$	3,036,000
Weighted-average years expected to be recognized over		2.0

(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 six months ended June 30, 2018 was $792,000.

The Company recognized total stock compensation expense of $0.9 million for the three months ended June 30, 2018, of which $0.2 million represents stock option compensation expense and $0.7 million represents restricted stock and performance based stock compensation expense. For the six months ended June 30, 2018, the Company recognized total stock compensation expense of $1.8 million, of which $0.4 million represents stock option compensation expense and $1.4 million represents restricted stock and performance based stock compensation expense. The Company recognized total stock compensation expense of $0.7 million for the three months ended June 30, 2017, of which $0.2 million represents stock option compensation expense and $0.5 million represents restricted stock and performance based stock compensation expense. For the six months ended June 30, 2017, the Company recognized total stock compensation expense of $1.5 million, of which $0.6 million represents stock option compensation expense and $0.9 million represents restricted stock and performance based stock compensation expense.