STOCK COMPENSATION EXPENSE (Tables)

12 Months Ended

Dec. 31, 2017

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

	2017			2016			2015
Risk-free interest rate		2.02	%		1.41	%		1.41	%
Expected option life (yrs)		5.36			5.00			5.00
Expected stock price volatility		18.40	%		16.48	%		17.20	%
Dividend yield		3.16	%		4.03	%		3.53	%
Weighted average fair value of options granted during the year	$	2.32		$	1.06		$	1.25

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

	-------2017-------					------2016------					------2015------
				Weighted Average Exercise					Weighted Average Exercise					Weighted Average Exercise
	Options			Price		Options			Price		Options			Price
Outstanding at beginning of year		203,990		$	11.54		274,030		$	10.56		301,336		$	10.05
Grants		55,500			19.01		55,990			13.55		52,415			13.38
Exercises		(32,291	)		11.37		(96,880	)		9.12		(50,700	)		9.19
Forfeitures or expired		(16,950	)		14.64		(29,150	)		14.27		(29,021	)		12.74
Outstanding at year-end		210,249		$	13.29		203,990		$	11.54		274,030		$	10.56

Exercisable at year-end		116,107		$	10.66		113,090		$	10.02		191,161		$	9.59
Weighted average remaining life		5.4					5.3					4.5

Additional information regarding stock options outstanding and exercisable at December 31, 2017 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

$	5.00 to $7.50		30,617	$	6.56	$	414		30,617		3.7	$	6.56	$	414
$	7.51 to $10.00		6,358		8.09		76		6,358		2.2		8.09		76
$	10.01 to $12.50		23,100		10.42		223		23,100		5.0		10.42		223
$	12.51 to $15.00		98,424		13.38		659		56,032		7.0		13.30		380
$	17.51 to $20.00		51,750		19.01		56		-		-		-		-
Outstanding at Dec 31, 2017			210,249		13.29	$	1,428		116,107		5.4		10.66	$	1,093