Employee Benefit Plans

The Company is participating in a multiple employer defined contribution employee benefit plan covering substantially all employees with six months or more of service. The Company matches a portion of the employees’ contributions and the plan has a discretionary profit sharing provision. Total employer contributions were $232,000, $224,000 and $210,000 for the years ended December 31, 2017, 2016 and 2015, respectively.

The Company has an Employee Stock Purchase Plan (“ESPP”). The ESPP allows employees of the Company to purchase stock quarterly through a payroll deduction at a discount calculated as 15% of the market value with a floor equal to the Company’s book value. The ESPP, which was approved by stockholders in July 2005, became effective in January 2007. Participation in the ESPP is voluntary. Employees are limited to investing $25,000 or 5% of their annual salary, whichever is lower, during the year. During the year ended December 31, 2017, there were no employee stock purchases within the plan.

The Company implemented an Incentive Compensation Plan (the "Plan") during the year ended December 31, 2014. Incentive awards are based on the financial and operating performance of the Company as well as other participant specific objectives. The Plan allows employees of the Company to earn up to 7.5 days of their annual salary for successfully completing specific goals established by the participants and their respective supervisors plus an additional 2.5 days of their annual salary if the Company meets an annual predetermined net operating income amount determined by the Board of Directors. The Company also implemented an Incentive Compensation Plan for executive level officers (the "Executive Plan"). Under this plan incentive awards are based on contributions to performance as measured by critical operating and financial ratios, and other participant specific objectives. The Company has to meet the annual predetermined net operating income amount determined by the Board of Directors for any incentive awards to be paid under the Executive Plan. If the Company does not meet the required net income amount, no incentives are paid regardless of the executive's performance on individual objectives or entity wide objectives. In 2016, the Company implemented a Quarterly Branch Incentive Compensation Plan. This plan is for retail branch employees only and pays incentive on a quarterly basis based on specific performance goals established for each branch location. All branch employees were moved from the original Plan to the Branch Incentive Plan. Participation in all 3 plans is voluntary. At December 31, 2017 and 2016, the Company accrued $362,500 and $250,000, respectively, for incentive payments, which were paid during the subsequent year.

Certain officers of the Company participate in a supplemental retirement plan. These benefits are not qualified under the Internal Revenue Code and they are not funded. During the years ended December 31, 2017, 2016 and 2015, the Company incurred expenses of $318,000, $276,000, and $205,000, respectively, for this plan.

Certain officers and directors of the Company participate in incentive and non-qualified stock option plans. Prior to fiscal 2010, the Company had three stock option plans that together authorized the Company to grant 150,000 options. In 2008, the 2008 Equity Incentive Plan was approved by stockholders and implemented by the Company with the intention of replacing the previous three option plans. No additional options are to be granted under the old plans and forfeitures under the old plans are not added to the new plan as available options, however, all existing options outstanding under these plans remain in effect. The 2008 Equity Incentive Plan provides for the grant of non-qualified and incentive stock options, stock appreciation rights (“SARS”), and restricted stock awards. Under the 2008 Equity Incentive Plan, 50,000 shares of common stock are reserved for the issuance of stock options and SARS in addition to 50,000 shares subject to restricted stock awards. The plan is administered by a committee appointed by the Board of Directors. The committee determines the specific employees, amount and type of any awards granted. At December 31, 2017 and 2016, there were 50,000 shares available for issuance under this plan for stock options and SARS. Options under all plans are granted at exercise prices not less than the fair value of the Company’s common stock on the date of the grant.

(16) Employee Benefit Plans, Continued

The following is a summary of the activity under the Company’s incentive and non-qualified stock option plans for the years ended December 31, 2017, 2016 and 2015:



	Years Ended December 31,
	2017			2016			2015
	Shares	Weighted Avg. Exercise Price		Shares	Weighted Avg. Exercise Price		Shares	Weighted Avg. Exercise Price
Balance, Beginning of Period	21,500	$	23.57	29,500	$	23.55	47,500	$	22.41
Options Granted	—	—		—	—		—	—
Options Exercised	7,500	23.49		—	—		—	—
Options Forfeited	9,500	23.95		8,000	23.47		18,000	20.55
Balance, End of Period	4,500	$	22.91	21,500	$	23.57	29,500	$	23.55

Options Exercisable	4,500	$	22.91	18,200	$	23.62	21,500	$	23.57
Weighted-Average Remaining Life of Exercisable Options	0.4 years			1.0 year			1.4 years
Options Available for Grant	50,000			50,000			50,000

During the year ended December 31, 2017, 3,300 options with a weighted average exercise price of $23.33 vested. During the year ended December 31, 2016, 4,500 stock options with a weighted average exercise price of $23.57 vested and during the year ended December 31, 2015, 5,200 options with a weighted average exercise price of $23.50 vested. The aggregate intrinsic value of the stock options outstanding and exercisable was $0 at December 31, 2017, 2016 and 2015. Total compensation expense related to stock options was $0, $8,000, and $12,700 for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, there was no unrecognized compensation cost related to non-vested stock options.

There were no stock options granted by the Company during the years ended December 31, 2017, 2016 and 2015. At December 31, 2017, the Company had the following options outstanding:

Options granted after March 31, 2006 generally vest 20% per year every year beginning in the sixth year after the grant date. These options may be exercised as they vest in years six through ten, or until the end of year ten after the grant date.

Grant Date

Outstanding
Options

Option Price

Expiration Date