Stock-Based Incentive Plan

The Corporation has a shareholder approved 2013 Long-Term Incentive Plan, which replaced the expired 2003 Long-Term Incentive Plan. Under the 2013 Long-Term Incentive Plan, the Corporation may grant up to 3,698,974 options and restricted stock to employees and non-employee directors, which includes 330,625 shares as a result of the Corporation's common stock issuance in 2017, 857,191 shares as a result of the completion of the acquisition of Fox Chase in 2016 and 473,483 shares as a result of the completion of the acquisition of Valley Green Bank in 2015.

The following is a summary of the Corporation's stock option activity and related information for the nine months ended September 30, 2018:



(Dollars in thousands, except per share data)	Shares Under Option		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value at September 30, 2018
Outstanding at December 31, 2017	512,735		$	21.90
Granted	192,278		28.50
Expired	(500	)	28.15
Forfeited	(20,418	)	26.14
Exercised	(59,750	)	18.92
Outstanding at September 30, 2018	624,345		24.08		7.5	$	2,150
Exercisable at September 30, 2018	259,031		20.41		5.9	1,662

The following is a summary of nonvested stock options at September 30, 2018 including changes during the nine months then ended:



(Dollars in thousands, except per share data)	Nonvested Stock Options		Weighted Average Grant Date Fair Value
Nonvested stock options at December 31, 2017	352,142		$	6.47
Granted	192,278		6.46
Vested	(158,688	)	6.43
Forfeited	(20,418	)	6.49
Nonvested stock options at September 30, 2018	365,314		6.48

The following aggregated assumptions were used to estimate the fair value of options granted during the nine months ended September 30, 2018 and 2017:



	Nine months ended September 30,
	2018		2017
	Actual
Expected option life in years	6.6		6.9
Risk free interest rate	2.80	%	2.30	%
Expected dividend yield	2.81	%	2.84	%
Expected volatility	27.15	%	29.75	%
Fair value of options	$6.46		$6.72

The following is a summary of nonvested restricted stock awards at September 30, 2018 including changes during the nine months then ended:



(Dollars in thousands, except per share data)	Nonvested Share Awards		Weighted Average Grant Date Fair Value
Nonvested share awards at December 31, 2017	229,026		$	21.93
Granted	59,953		28.39
Vested	(94,867	)	19.94
Forfeited	(25,780	)	21.63
Nonvested share awards at September 30, 2018	168,332		25.41

The fair value of restricted stock is equivalent to the fair value on the date of grant and is amortized over the vesting period. Certain information regarding restricted stock is summarized below for the periods indicated:



	Nine months ended September 30,
(Dollars in thousands, except per share data)	2018		2017
Shares granted	59,953		61,823
Weighted average grant date fair value	$	28.39	$	28.08
Intrinsic value of awards vested	$	2,648	$	2,914

The total unrecognized compensation expense and the weighted average period over which unrecognized compensation expense is expected to be recognized related to nonvested stock options and nonvested restricted stock awards at September 30, 2018 is presented below:



(Dollars in thousands)	Unrecognized Compensation Cost		Weighted-Average Period Remaining (Years)
Stock options	$	1,592	1.9
Restricted stock awards	2,107		1.8
	$	3,699	1.9

The following table presents information related to the Corporation’s compensation expense related to stock incentive plans recognized for the periods indicated:



	Nine months ended September 30,
(Dollars in thousands)	2018		2017
Stock-based compensation expense:
Stock options	$	797	$	678
Restricted stock awards	1,582		1,872
Employee stock purchase plan	51		47
Total	$	2,430	$	2,597
Tax benefit on nonqualified stock option expense, restricted stock awards and disqualifying dispositions of incentive stock options	$	624	$	1,263