NOTE 15 - STOCK BASED COMPENSATION

The Company has four share based compensation plans as described below. Total compensation cost that has been charged against income for those plans was $153 thousand, $133 thousand, and $111 thousand for 2016, 2015 and 2014.

Two Stock Option Plans

Under the expired 1993 Non-Employee Directors Stock Ownership Incentive Plan, the Company had also granted certain directors stock option awards which vest and become fully exercisable immediately and provided for issuance of up to 20,000 options. 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.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses various assumptions. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. No options were granted in 2016, 2015 or 2014.

Summary of activity in the two expired stock option plans for 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	9.2 months	$	1,800
Vested and expected to vest	1,200	$	31.00	9.2 months	$	1,800
Exercisable, end of period	1,200	$	31.00	9.2 months	$	1,800

Options outstanding at year-end 2016 were as follows:


		Outstanding		Exercisable
		Weighted
		Average	Weighted		Weighted
		Remaining	Average		Average
		Contractual	Exercise		Exercise
Range of Exercise Prices	Options	Life (Months)	Price	Options	Price

From $31.00 to $31.00 per share	1,200	9.2	$ 31.00	1,200	$ 31.00

As of December 31, 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, as of December 31, 2016, neither plan allows for additional options to be issued.

2005 Restricted Stock Grant Plan

Under its expired 2005 Restricted Stock Grant Plan, total shares issuable under the plan were 50,000. There were no shares issued during 2016 and 5,385 shares issued during 2015. There were 916 shares forfeited during 2016 and 88 shares forfeited during 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	17,551	$	404,351	$	23.04
Granted	—		—		—
Vested	(5,999)		(128,453)		21.41
Forfeited	(916)		(22,380)		24.43
Nonvested at December 31, 2016	10,636	$	253,518	$	23.84

As of December 31, 2016, there was $160 thousand of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.4 years. The total grant-date fair value of shares vested during the years ended December 31, 2016, 2015 and 2014 was $128 thousand, $105 thousand and $88 thousand. The vesting-date fair value of shares vested during 2016, 2015 and 2014 is immaterially different when compared to the grant-date fair value. Since the plan has expired, as of December 31, 2016, no additional restricted stock share awards will be issued.

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 2016 and 1,465 shares issued during 2015. There were 265 shares forfeited during 2016 and none during 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	1,945	$	54,024	$	27.78
Granted	6,170		182,941		29.65
Vested	(553)		(15,255)		27.59
Forfeited	(265)		(7,857)		29.65
Nonvested at December 31, 2016	7,297	$	213,853	$	29.31

As of December 31, 2016 there was $172 thousand of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3.9 years. The total grant-date fair value of shares vested during the years ended December 31, 2016, 2015 and 2014 was $15 thousand, $6 thousand and $4. The vesting-date fair value of shares vested during 2016, 2015 and 2014 is immaterially different when compared to the grant-date fair value. As of December 31, 2016, the 2009 stock award plan allows for additional restricted stock share awards of up to 142 thousand shares.