NOTE 15 - STOCK BASED COMPENSATION

The Company has three share based compensation plans as described below. Total compensation cost that has been charged against income for those plans was $163 thousand, $153 thousand, and $133 thousand for 2017, 2016 and 2015.

One Stock Option Plan

Under the expired 1993 Non-Employee Directors Stock Ownership Incentive Plan, the Company had 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 2017, 2016 or 2015.

Summary of activity in the expired stock option plan for 2017 follows:


				Weighted
		Weighted		Average	Aggregate
		Average		Remaining	Intrinsic
		Exercise		Contractual	Value
	Shares	Price		Term	(in thousands)
Outstanding, beginning of year	1,200	$	31.00
Granted	—		—			—
Forfeited or expired	—		—			—
Exercised	(600)		31.00
Outstanding, end of period	600	$	31.00	2 months	$	9
Vested and expected to vest	600	$	31.00	2 months	$	9
Exercisable, end of period	600	$	31.00	2 months	$	9

As of December 31, 2017, there was $0 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. Since the stock option plan has expired, as of December 31, 2017, no additional options will 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 2017 and 2016. There were 147 shares forfeited during 2017 and 916 shares forfeited during 2016. Since the plan has expired, as of December 31, 2017, no additional restricted stock share awards will be issued.

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, 2017	10,636	$	253,518	$	23.84
Granted	—		—		—
Vested	(4,348)		(97,747)		22.48
Forfeited	(147)		(3,787)		25.76
Nonvested at December 31, 2017	6,141	$	151,984	$	24.75

As of December 31, 2017, the total unrecognized compensation cost related to nonvested shares granted under the Plan is expected to be recognized over a weighted-average period of 1.6 years. The total grant-date fair value of shares vested during the years ended December 31, 2017, 2016 and 2015 was $98 thousand, $128 thousand and $105 thousand.

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 6,575 shares issued during 2017 and 6,170 shares issued during 2016. There were 1,094 shares forfeited during 2017 and 265 shares forfeited during 2016. As of December 31, 2017, the 2009 stock award plan allows for additional restricted stock share awards of up to 134 thousand shares.

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, 2017	7,297	$	213,853	$	29.31
Granted	6,575		213,688		32.50
Vested	(1,848)		(54,022)		29.23
Forfeited	(1,094)		(34,974)		31.97
Nonvested at December 31, 2017	10,930	$	338,545	$	30.97

As of December 31, 2017 the total unrecognized compensation cost related to nonvested shares granted under the Plan is expected to be recognized over a weighted-average period of 3.5 years. The total grant-date fair value of shares vested during the years ended December 31, 2017, 2016 and 2015 was $54 thousand, $15 thousand and $6 thousand.