6. STOCK-BASED COMPENSATION

Stock Options

Under the terms of the Company’s stock option plans adopted in 1999 and 2009, options have been granted to key employees and directors to purchase shares of the Company’s stock. Options are awarded by the Compensation Committee of the Board of Directors. Both plans provide that the option price shall not be less than the fair value of the common stock on the date the option is granted.

No options have been granted since 2013. Options granted in 2013 and 2012 were exercisable commencing one year from the date of grant at a rate of one-third per year. Options granted prior to 2012 were generally 100% exercisable commencing one year from the date of grant. All options are exercisable for a period of ten years or less.

No options were exercised during the first three months of 2016. The total intrinsic value of options exercised during the first three months of 2015 was $6 thousand. The total cash received from the 2015 option exercises was $19 thousand, excluding the tax benefit realized. In exercising those options, 1,000 shares of the Company’s common stock were issued.

Both plans provide for but do not require the grant of stock appreciation rights (“SARs”) that the holder may exercise instead of the underlying option. At March 31, 2016, there were 6,000 SARs outstanding related to options granted before 2011. The SARs had no intrinsic value at March 31, 2016. When the SAR is exercised, the underlying option is canceled. The optionee receives shares of common stock or cash with a fair market value equal to the excess of the fair value of the shares subject to the option at the time of exercise (or the portion thereof so exercised) over the aggregate option price of the shares set forth in the option agreement. The exercise of SARs is treated as the exercise of the underlying option.

A summary of stock option activity follows:

	Number of Shares			Weighted-Average Exercise Price Per Share
Outstanding, January 1, 2016		185,100		$	15.73
Granted		-			-
Exercised		-			-
Forfeited or expired		(3,000	)	$	34.95
Outstanding, March 31, 2016		182,100		$	15.41

The following summarizes shares subject to purchase from stock options outstanding and exercisable as of March 31, 2016:

		Outstanding					Exercisable
Range of Exercise Prices		Shares		Weighted-Average Remaining Contractual Life	Weighted-Average Exercise Price		Shares		Weighted-Average Remaining Contractual Life	Weighted-Average Exercise Price
$	10.00 - $14.00		90,000	5.8 years	$	11.68		73,334	5.8 years	$	11.88
$	14.01 - $20.00		83,100	7.3 years	$	17.80		58,606	7.3 years	$	17.59
$	20.01 - $30.00		3,000	2.8 years	$	28.30		3,000	2.8 years	$	28.30
$	30.01 - $40.00		6,000	1.3 years	$	32.04		6,000	1.3 years	$	32.04
			182,100	6.3 years	$	15.41		140,940	6.2 years	$	15.46

Restricted Stock Awards

Under the Company’s Amended and Restated 2009 Stock Incentive Plan (the “2009 Plan”), the Company can award options, SARs and restricted stock. During the first three months of 2016 and 2015, the Company awarded 31,621 and 51,562 shares of restricted stock to certain key employees and directors. Generally, the restricted stock awards vest over a three-year period commencing one year from the date of grant at a rate of one-third per year. The fair value at grant date of the 15,682 restricted shares that vested during the first three months of 2016 was $357 thousand. Of the 15,682 vested shares, 3,898 were withheld to pay taxes due upon vesting. No restricted shares vested during the first three months of 2015. A summary of restricted stock activity follows:

	Number of Shares			Weighted-Average Grant-Date Fair Value
Unvested, January 1, 2016		108,073		$	22.94
Granted		31,621		$	25.13
Vested		(15,682	)	$	22.76
Forfeited or expired		(50	)	$	25.13
Unvested, March 31, 2016		123,962		$	23.52

The Company recognizes compensation expense for the fair value of stock options and restricted stock on a straight line basis over the requisite service period of the grants. Compensation expense related to stock-based compensation amounted to $224 thousand and $222 thousand for the three months ended March 31, 2016 and 2015, respectively. The remaining unrecognized compensation cost of approximately $40 thousand and $2.1 million at March 31, 2016 related to stock options and restricted stock, respectively, will be expensed over the remaining weighted average vesting period of approximately 0.6 years and 1.9 years, respectively.

Under the 2009 Plan, a total of 500,000 shares of the Company’s common stock were reserved for issuance, of which 135,257 shares remain for possible issuance at March 31, 2016. There are no remaining shares reserved for issuance under the 1999 Stock Option Plan.