Share-Based Compensation

3 Months Ended

Mar. 31, 2016

(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, 2015. 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,
	2016		2015
Total Share-based compensation expense	$	201	$	210

The total income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements was approximately $57,000 and $58,000, respectively, for the three-month periods ended March 31, 2016 and 2015.

The following is a summary of stock option activity under all plans for the three- month period ended March 31, 2016:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
		Exercise		Contractual	Intrinsic
	Shares Under	Price		Life	Value
	Options	(per share)		(in years)	(in thousands)
Outstanding December 31, 2015	270,205	$	15.40
Granted	—		—
Exercised	—		—
Outstanding March 31, 2016	270,205	$	15.40	3.55	$	1,941
Exercisable at March 31, 2016	235,206	$	14.45	3.69	$	1,893
Vested and expected to vest at March 31, 2016	270,205	$	15.40	3.55	$	1,941

The Company did not grant any stock options during the first quarter of 2016.

During the three-month period ended March 31, 2015, 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 $600,000, and the total amount of consideration received by the Company from the exercised options was approximately $130,000. 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-months ended March 31, 2016 and 2015, there were no shares surrendered for this purpose.

During each of the three-month periods ended March 31, 2016 and 2015, the Company recognized compensation expense related to stock options granted to directors and employees of approximately $36,000 and $44,000, respectively.

On February 22, 2016, 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 on December 22, 2016. The Company recorded compensation expense associated with the award of $100,000 during the three-month period ended March 31, 2016. The Company recorded compensation expense associated with a similar award of $100,000, during the three-month period ended March 31, 2015.

The following table summarizes information about Restricted Stock Units (“RSUs”) activity during the three-month period ended March 31, 2016:


		Weighted
	Restricted	Average Award
	Stock Units	Date Fair Value
Unvested at December 31, 2015	40,645	$	19.67
Awarded	17,329		21.64
Shares vested	(11,909)		20.94
Unvested at March 31, 2016	46,065	$	20.08

During the three-month periods ended March 31, 2016 and 2015, the Company recorded compensation expense related to RSUs of approximately $65,000 and $66,000, respectively.

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, 2016 and 2015, 3,889 and 3,405 shares were surrendered at an average market price of $22.82 and $23.15, respectively.

As of March 31, 2016, the Company had approximately $1.2 million of unrecognized compensation expense, which is expected to be recognized over a period of 4 years.