STOCK COMPENSATION EXPENSE (Tables)

12 Months Ended

Dec. 31, 2014

The assumptions used in the Black-Scholes option-pricing model are as follows

	2014			2013			2012
Risk-free interest rate		2.78	%		1.96	%		2.31	%
Expected option life (yrs)		10.00			10.00			10.00
Expected stock price volatility		31.19	%		35.24	%		34.93	%
Dividend yield		3.33	%		3.86	%		2.68	%
Weighted average fair value of options granted during the year	$	3.74		$	2.85		$	2.34

A summary of the Company’s stock option activity is as follows:

	----------2014----------					----------2013----------					----------2012----------
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of year		354,281		$	9.84		392,366		$	9.24		350,949		$	9.69
Grants		46,300			14.43		52,900			11.39		105,700			7.47
Exercises		(118,506	)		8.86		(78,584	)		7.77		(25,550	)		7.52
Forfeitures or expired		(8,133	)		9.27		(12,401	)		7.90		(38,733	)		9.61
Outstanding at year-end		273,942		$	11.06		354,281		$	9.84		392,366		$	9.24

Exercisable at year-end		168,523		$	10.67		212,731		$	10.55		220,646		$	10.68
Weighted average remaining life		6.1					6.1					6.6

Additional information regarding stock options outstanding and exercisable at December 31, 2014 is provided in the following table:

	- - - - - - - - Outstanding - - - - - - - -						- - - - - - - - Currently Exercisable - - - - - - - -
Range of Exercise Prices	Number		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value

$6.50 to $10.00		114,482	$	7.56	$	919		86,623		6.2	$	7.58	$	693
$10.01 to $12.50		43,000		11.39		180		11,740		8.2		11.39		49
$12.51 to $15.00		92,960		13.98		149		46,660		2.6		13.53		96
$15.01 to $17.50		23,500		16.00		-		23,500		1.1		16.00		-
Outstanding at Dec 31, 2014		273,942		11.06	$	1,248		168,523		4.6		10.67	$	838