Share-Based Compensation Plan

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The Company sponsors one share-based compensation plan, the 2006 Equity Compensation Plan, which provided for the granting of stock options, stock appreciation rights, stock awards, performance share awards, incentive awards, and stock units. The 2006 Equity Compensation Plan was approved by the Company’s shareholders at the Annual Meeting held on April 26, 2006, and succeeded the Company’s 1997 Stock Incentive Plan. The plan expired by its own terms in February 2016, before which, the Company granted share-based compensation to its directors, officers, employees, and other persons the Company determined to have contributed to the profits or growth of the Company. The number of shares reserved for issuance totaled 430,000.

For the three months ended September 30, 2016 and 2015, the Company recorded $240,000 and $162,000, respectively, in share-based compensation. For the nine months ended September 30, 2016 and 2015, the Company recorded $685,000 and $443,000, respectively, in share-based compensation expense. As of September 30, 2016, there was $1.9 million of total unrecognized compensation expense related to non-vested restricted awards under the 2006 Equity Compensation Plan. For the three and nine months ended September 30, 2016 and 2015, the Company recorded no compensation expense related to option awards. As of September 30, 2016 all outstanding option awards were previously vested and, accordingly, there was no unrecognized compensation expense as of September 30, 2016.

The aggregate intrinsic value, noted in the option table below, represents the amount by which the current market value of the underlying stock exceeds the exercise price as of September 30, 2016. Given there is no exercise price for restricted stock, the aggregate value is equal to the current market value of the stock. These amounts change based on changes in the market value of the Company’s common stock.

The following table summarizes restricted stock awarded under the 2006 Equity Compensation Plan:



	September 30, 2016
	Shares		Weighted-Average Grant Date Fair Value		Aggregate Value (in thousands)
Non-vested at December 31, 2015	153,399		$	17.17
Granted	53,500		20.76
Vested	(33,691	)	16.49
Forfeited	(2,250	)	19.91
Non-vested at September 30, 2016	170,958		$	18.39	$	4,835

The weighted-average remaining contractual term for non-vested restricted stock awards at September 30, 2016, was 2.50 years.

The following table summarizes options outstanding under the 2006 Equity Compensation Plan and remaining outstanding unexercised options under the 1997 Stock Incentive Plan.



	September 30, 2016
	Shares		Weighted-Average Exercise Price		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2015	30,012		$	14.00	$	—
Granted	—		—		—
Exercised	(6,650	)	14.00		—
Forfeited	—		—		—
Outstanding at September 30, 2016	23,362		$	14.00	$	334
Options exercisable at September 30, 2016	23,362		$	14.00	$	334

The total intrinsic value of options exercised was $27,000 and $88,000 during the three and nine months ended September 30, 2016, respectively. There were no options exercised for the three and nine months ended September 30, 2015.

As of September 30, 2016, options outstanding and exercisable are summarized as follows:



Exercise Prices		Options Outstanding	Weighted-Average Remaining Contractual Life (years)	Options Exercisable
$	14.00	18,362	2.47	18,362
$	14.00	5,000	3.10	5,000
$	14.00	23,362	2.61	23,362