STOCK COMPENSATION EXPENSE (Tables)

12 Months Ended

Dec. 31, 2019

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

	2019			2018			2017
Risk-free interest rate		2.34	%		2.69	%		2.02	%
Expected option life (yrs)		5.42			5.37			5.36
Expected stock price volatility		28.45	%		22.47	%		18.40	%
Dividend yield		3.85	%		3.17	%		3.16	%
Weighted average fair value of options granted during the year	$	2.91		$	2.49		$	2.32

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

	2019					2018					2017
				Weighted Average Exercise					Weighted Average Exercise					Weighted Average Exercise
	Options			Price		Options			Price		Options			Price
Outstanding at beginning of year		298,383		$	11.66		262,811		$	10.63		254,988		$	9.23
Grants		72,075			15.57		67,875			15.12		69,375			15.21
Exercises		(26,979	)		10.13		(28,151	)		10.12		(40,364	)		9.10
Forfeitures or expired		(10,838	)		14.21		(4,152	)		13.91		(21,188	)		11.71
Outstanding at year-end		332,641		$	12.54		298,383		$	11.66		262,811		$	10.63

Exercisable at year-end		200,123		$	10.67		172,577		$	9.55		145,134		$	8.53
Weighted average remaining life		5.0					5.2					4.3

Additional information regarding stock options outstanding and exercisable at December 31, 2019 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

$	4.00 to $6.00		32,276	$	5.28	$	415		32,276		1.8	$	5.28	$	415
$	6.01 to $8.00		4,814		6.47		56		4,814		0.2		6.47		56
$	8.01 to $10.00		15,715		8.28		155		15,715		3.2		8.28		155
$	10.01 to $12.00		96,595		10.70		719		96,595		5.3		10.70		719
$	12.01 to $16.00		183,241		15.32		517		50,723		8.3		15.18		150
Outstanding at Dec 31, 2019			332,641		12.54	$	1,862		200,123		6.5		10.67	$	1,495