STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

NOTE 6. STOCK-BASED COMPENSATION

Equity Incentive Plan. The Company’s 2014 Long-Term Incentive Compensation Plan (the “Plan”) authorizes the grant of various types of equity grants and awards, such as restricted stock, stock options and stock appreciation rights to eligible participants, which include all of the Company’s employees and non-employee directors. The Plan has reserved 600,000 shares of common stock for grant, award or issuance to directors and employees, including shares underlying granted options. The Plan is administered by the Compensation Committee of the Company’s Board of Directors, which determines, within the provisions of the Plan, those eligible employees to whom, and the times at which, grants and awards will be made. The Compensation Committee, in its discretion, may delegate its authority and duties under the Plan to specified officers; however, only the Compensation Committee may approve the terms of grants and awards to the Company’s executive officers.

Stock Options

The Company uses a Black-Scholes option pricing model to estimate the fair value of share-based awards. The Black-Scholes option pricing model incorporates various and highly subjective assumptions, including expected term and expected volatility. Stock option expense in the accompanying consolidated statement of operations for the three and nine months ended September 30, 2015 was $42,000 and $0.1 million respectively, and $31,000 for both the three and nine months ended September 30, 2014.

The assumptions presented below were used for the options granted during the nine months ended September 30, 2015.

Expected dividends		0.17	%
Expected volatility		18.48	%
Risk-free interest rate		1.79	%
Expected term (in years)		7.0
Weighted-average grant date fair value	$	3.75

At September 30, 2015, there was $0.8 million of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 4.7 years.

The table below summarizes stock option activity for the periods presented.


	Nine Months Ended
	September 30, 2015					September 30, 2014
	Number			Weighted-Average		Number		Weighted-Average
	of Options			Exercise Price		of Options		Exercise Price

Outstanding at beginning of period		238,811		$	13.94		22,811	$	13.33
Granted		64,333			15.74		216,000		14.00
Forfeited		(14,667	)		14.00		-		-
Exercised		(10,125	)		13.33		-		-
Outstanding at end of period		278,352		$	14.37		238,811	$	13.94
Exercisable at end of period		47,351		$	13.82		22,811	$	13.33

At September 30, 2015, the shares underlying outstanding stock options and exercisable stock options had aggregate intrinsic values of $0.3 million and $79,000, respectively.

Time Vested Restricted Stock Awards

During the nine months ended September 30, 2015 and 2014, the Company issued shares of time vested restricted stock with vesting terms ranging from two to six years. The total share-based compensation expense to be recognized for these awards is determined based on the market price of the Company’s common stock at the grant date applied to the total number of shares awarded and is amortized over the vesting period.

The table below summarizes the time vested restricted stock award activity for the periods presented.

	Nine Months Ended
	September 30, 2015					September 30, 2014
	Shares			Weighted Avg Grant Date Fair Value		Shares			Weighted Avg Grant Date Fair Value

Balance at beginning of period		42,889		$	13.96		44,090		$	13.99
Granted		33,757			15.40		9,917			14.00
Forfeited		(2,670	)		14.19		-			-
Earned and issued		(9,638	)		14.01		(12,264	)		13.98
Balance at end of period		64,338		$	14.71		41,743		$	14.00

At September 30, 2015, there was $0.8 million of unrecognized compensation cost related to time vested restricted stock awards that is expected to be recognized over a weighted average period of 3.6 years.