STOCK COMPENSATION

6 Months Ended

Jun. 30, 2016

6.STOCK COMPENSATION

We have four stock based compensation plans as described below.

Two Stock Option Plans

Under its expired 1999 Employee Stock Option Plan, the Company has granted certain officers and key employees stock option awards which vest and become fully exercisable at the end of five years and provided for issuance of up to 100,000 options.

Under the expired 1993 Non-Employee Directors Stock Ownership Incentive Plan, the Company also granted certain directors stock option awards which vest and become fully exercisable immediately and provided for issuance of up to 20,000 options. For each Stock Option Plan, the exercise price of each option which has a ten year life, was equal to the market price of the Company’s stock on the date of grant.

Summary of activity in the stock option plan for the first six months of 2016 follows:


				Weighted
		Weighted		Average
		Average		Remaining		Aggregate
		Exercise		Contractual		Intrinsic
	Shares	Price		Term		Value

Outstanding, beginning of year	2,400	$	30.37
Granted	—		—
Forfeited or expired	(1,200)		29.75
Exercised	—		—
Outstanding, end of year	1,200	$	31.00	14.0	months	$	—
Vested and expected to vest	1,200	$	31.00	14.0	months	$	—
Exercisable, end of period	1,200	$	31.00	14.0	months	$	—

As of June 30, 2016, there was $0 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. Since both stock option plans have expired, neither plan allows for additional options to be issued.

2005 Restricted Stock Grant Plan

On May 10, 2005, the Company’s stockholders approved a restricted stock grant plan. Total shares issuable under the plan were 50,000. There were 0 shares issued during the first six months of 2016 and 5,385 shares issued during the first six months of 2015. The plan is now expired and no additional shares will be issued from the 2005 plan. There were no shares forfeited during the first six months of both 2016 and 2015.

A summary of changes in the Company’s nonvested shares for the year follows:


		Weighted-Average		Fair
		Grant-Date		Value
Nonvested Shares	Shares	Fair Value		Per Share

Nonvested at January 1, 2016	12,696	$	271,365	$	21.37
Granted	—		—		—
Vested	(5,799)		(125,087)		21.57
Forfeited	—		—		—

Nonvested at June 30, 2016	6,897	$	146,278	$	21.21

As of June 30, 2016, there was $230 thousand of total unrecognized compensation cost related to nonvested shares granted under the restricted stock grant plan. The cost is expected to be recognized over a weighted-average period of 2.7 years. As June 30, 2016, no additional shares are available for issuance under the restricted stock grant plan.

2009 Stock Award Plan

On May 13, 2009, the Company’s stockholders approved a stock award plan that provides for the granting of both incentive and nonqualified stock options and other share based awards. Total shares issuable under the plan are 150,000. There were 6,170 shares issued during the first six months of 2016 and 465 shares were issued during the first six months of 2015. There were no shares forfeited during the first six months of both 2016 or 2015.

A summary of changes in the Company’s nonvested shares for the year follows:


		Weighted-Average		Fair
		Grant-Date		Value
Nonvested Shares	Shares	Fair Value		Per Share

Nonvested at January 1, 2016	6,800	$	170,263	$	25.04
Granted	6,170		182,941		29.65
Vested	(353)		(9,749)		27.62
Forfeited	—		—		—
Nonvested at June 30, 2016	12,617	$	343,455	$	27.22

As of June 30, 2016, there was $205 thousand of total unrecognized compensation cost related to nonvested shares granted under the restricted stock grant plan. The cost is expected to be recognized over a weighted-average period of 4.3 years. As of June 30, 2016, 140,013 shares are still available for issuance.