(4)

Share-Based Compensation

Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant).

The Company issues share-based awards through several plans that are described in detail in the notes to the consolidated financial statements for the year ended

December

31,

2016.

The compensation cost charged against income for those plans is included in selling, general & administrative expenses as follows (in thousands):

	Three Months Ended
	March 31,
Share-based compensation related to:	2017		2016
Stock options granted to directors and employees	$	9	$	36
Common stock granted to the Company's Chief Executive Officer		100		100
Restricted Stock Unit awards to employees		100		65
Total share-based compensation	$	209	$	201

The total income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements was approximately

$137,000

and

$57,000,

for the

three

-month periods ended

March

31,

2017

and

2016

, respectively.

The following is a summary of stock option activity under all plans for the

three

-month period ended

March

31,

2017

	Shares Under Options			Weighted Average Exercise Price (per share)		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2016		232,578		$	16.53
Granted		-			-
Exercised		(10,375	)		7.60
Expired		(3,750	)		18.85
Outstanding at March 31, 2017		218,453		$	16.92		2.85	$	1,767
Exercisable at March 31, 2017		213,453		$	16.74		2.88	$	1,764
Vested and expected to vest at March 31, 2017		218,453		$	16.92		2.85	$	1,767

During the

three

-month period ended

March

31,

2017

, the total intrinsic value of all options exercised (i.e., the difference between the market price on the exercise date and the price paid by the employees to exercise the options) was approximately

$184,000,

and the total amount of consideration received by the Company from the exercised options was approximately

$79,000.

There were no options exercised during the

three

-month period ended

March

31,

2016.

At its discretion, the Company allows option holders to surrender previously owned common stock in lieu of paying the exercise price and withholding taxes. During the

three

month periods ended

March

31,

2017

and

2016,

there were no shares surrendered for this purpose.

February

2017,

the Company’s Compensation Committee approved the award of

$400,000,

payable in shares of common stock to the Company’s Chairman, Chief Executive Officer, and President under the

2003

Incentive Plan. The shares will be issued in

December,

2017.

The following table summarizes information about Restricted Stock Units (“RSUs”) activity during the

three

-month period ended

March

31,

2017:

	Restricted Stock Units			Weighted Average Award Date Fair Value
Unvested at December 31, 2016		46,558		$	20.05
Awarded		30,360			24.70
Shares vested		(13,419	)		23.54
Unvested at March 31, 2017		63,499		$	20.87

At the Company’s discretion, RSU holders are given the option to net-share settle to cover the required minimum withholding tax, and the remaining amount is converted into the equivalent number of common shares. During the

three

-month periods ended

March

31,

2017

and

2016,

4,377

and

3,889

shares were surrendered at an average market price of

$24.50

and

$22.82,

respectively.

As of

March

31,

2017,

the Company had approximately

$1.0

million of unrecognized compensation expense, which is expected to be recognized over a period of

years