NOTE F — STOCK COMPENSATION

Option Awards

A summary of the Company’s stock option activity and related information for the three months ended March 31, 2016 is as follows:


	Options			Weighted- average exercise price		Weighted- average remaining contractual life (years)		Aggregate intrinsic value
Options outstanding, January 1, 2016		2,242,202		$	14.28
Exercises		(30,375	)		3.78
Cancellations		(23,375	)		15.32
Expirations		(800	)		15.95

Options outstanding, March 31, 2016		2,187,652			14.41		4.8		6,171,200

Options exercisable, March 31, 2016		1,694,819		$	14.03		4.1	$	5,584,600

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 March 31, 2016. 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 March 31, 2016 and the exercise price.

The total intrinsic value of stock options exercised for the three month periods ended March 31, 2016 and 2015 was $275,000 and $163,500, respectively. The intrinsic value of a stock option that is exercised is calculated at the date of exercise.

Total unrecognized stock option compensation expense at March 31, 2016, before the effect of income taxes, was $2.6 million and is expected to be recognized over a weighted-average period of 1.8 years.

Restricted Stock

A summary of the Company’s restricted stock activity and related information for the three months ended March 31, 2016 is as follows:


	Restricted Shares			Weighted- average grant date fair value
Nonvested restricted shares, January 1, 2016		101,435		$	14.77
Grants		1,674			12.52
Cancellations		(1,250	)		14.84

Nonvested restricted shares, March 31, 2016		101,859		$	14.73


Total unrecognized compensation expense remaining	$	935,000
Weighted-average years expected to be recognized over		2.3

No restricted stock vested during the three months ended March 31, 2016.

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 by December 31, 2017, as determined by the Compensation Committee. 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 three months ended March 31, 2016 is as follows:


	Performance- based stock awards ⁽¹⁾			Weighted- average grant date fair value
Nonvested performance-based awards, January 1, 2016		66,150		$	14.84
Cancellations		(941	)		14.84

Nonvested performance-based awards, March 31, 2016		65,209		$	14.84


Total unrecognized compensation expense remaining	$	646,600
Weighted-average years expected to be recognized over		1.75

(1)	Represents the target number of shares to be issued for each performance share award.

The Company recognized total stock compensation expense of $803,000 for the three months ended March 31, 2016, of which $501,000 represents stock option compensation expense, $270,000 represents restricted stock and performance based compensation expense and $32,000 represents stock awards granted in 2016. The Company recognized total stock compensation expense of $750,000 for the three months ended March 31, 2015, of which $597,000 represents stock option compensation expense, $100,000 represents restricted stock compensation expense and $53,000 represents stock awards granted in 2015.

At March 31, 2016, there were 471,450 shares available for awards that could be granted under the Company’s Amended and Restated 2000 Long-Term Incentive Plan.