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 September 30, 2018, there were 900,439 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 nine months ended September 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
Exercises		(31,000	)		4.60
Cancellations		(15,250	)		17.66
Expirations		(14,250	)		17.39

Options outstanding, September 30, 2018		1,601,450			13.73		4.4	$	695,000

Options exercisable, September 30, 2018		1,281,020		$	13.53		3.4	$	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 September 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 September 30, 2018 and the exercise price.

The total intrinsic value of those stock options that were exercised in the nine months ended September 30, 2018 and 2017 was $221,000 and $0.9 million, respectively. The intrinsic value of a stock option that is exercised in calculated at the date of exercise.

Total unrecognized stock option compensation expense at September 30, 2018, before the effect of income taxes, was $1.2 million and is expected to be recognized over a weighted-average period of 1.7 years.

Restricted Stock

A summary of the Company’s restricted stock activity and related information for the nine months ended September 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		(85,927	)		17.23
Cancellations		(12,302	)		15.21

Non-vested restricted shares, September 30, 2018		344,847		$	14.65

Total unrecognized compensation expense remaining	$	4,228,000
Weighted-average years expected to be recognized over		1.7

The fair value of restricted stock that vested during the nine months ended September 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 nine months ended September 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		182,175			12.81
Vested		(58,888	)		14.84
Cancellations		(8,397	)		16.13

Non-vested performance-based awards, September 30, 2018		343,782		$	14.83

Total unrecognized compensation expense remaining	$	3,012,000
Weighted-average years expected to be recognized over		1.9

(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 nine months ended September 30, 2018 was $792,000.

The Company recognized total stock compensation expense of $1.3 million for the three months ended September 30, 2018, of which $0.2 million represents stock option compensation expense and $1.1 million represents restricted stock and performance based stock compensation expense. For the nine months ended September 30, 2018, the Company recognized total stock compensation expense of $3.0 million, of which $0.6 million represents stock option compensation expense and $2.4 million represents restricted stock and performance based stock compensation expense.

The Company recognized total stock compensation expense of $1.0 million for the three months ended September 30, 2017, of which $0.2 million represents stock option compensation expense and $0.8 million represents restricted stock and performance based stock compensation expense. For the nine months ended September 30, 2017, the Company recognized total stock compensation expense of $2.5 million, of which $0.8 million represents stock option compensation expense and $1.7 million represents restricted stock and performance based stock compensation expense.