(11) Stock-Based Compensation Plans

The components of stock compensation expense for the years ended December 31, 2016, 2015, and 2014, included in the accompanying consolidated statements of income were as follows:


	2016		2015		2014
	(in thousands)
2007 Stock Incentive Plan	$	3,681	$	4,102	$	3,459
Employee Stock Purchase Plan		36		48		50
Total Stock Compensation Expense	$	3,717	$	4,150	$	3,509

The significant stock compensation plans are described below.

Our 2007 Stock Incentive Plan (the 2007 Plan) was adopted on May 24, 2007. Under this 2007 Plan, a total of 2,000,000 shares are authorized for stock based compensation available in the form of either restricted stock or stock options. On May 28, 2015, the Company’s shareholders authorized an increase in the number of shares of Common Stock available for grant by 800,000 shares bringing the total to 2,800,000 shares authorized. 2,400,357 shares of restricted stock were granted under the 2007 Stock Incentive Plan by December 31, 2016. Of this amount, 155,745 shares of restricted stock were cancelled and returned to the pool of shares which could be granted under the 2007 Stock Incentive Plan resulting in a net number of 555,388 shares which were available as of December 31, 2016 for future issuance under the 2007 Incentive Plan. The fair value of the restricted stock awards equaled the stock price at the date of grants.

The following table summarizes restricted stock activity during the years ended December 31:


		Shares
Restricted stock at December 31, 2013		515,130
Granted in 2014 (vesting over 3 years)		174,500
Granted in 2014 (vesting over 4 years)		13,000
Granted in 2014 (vesting on first anniversary from date of issuance)		50,208
Cancelled in 2014		(5,750)
Vested in 2014		(221,732)
Restricted stock at December 31, 2014		525,356
Granted in 2015 (vesting over 3 years)		125,000
Granted in 2015 (vesting over 4 years)		5,000
Granted in 2015 (vesting on first anniversary from date of issuance)		16,440
Cancelled in 2015		—
Vested in 2015		(275,201)
Restricted stock at December 31, 2015		396,595
Granted in 2016 (vesting over 2 years)		20,000
Granted in 2016 (vesting over 3 years)		85,000
Granted in 2016 (vesting over 4 years)		13,250
Granted in 2016 (vesting on first anniversary from date of issuance)		18,395
Cancelled in 2016		(20,377)
Vested in 2016		(213,528)
Restricted stock at December 31, 2016		299,335

Our accounting policy is to recognize the associated expense of such awards on a straight-line basis over the vesting period. At December 31, 2016 the stock compensation expense related to the restricted stock awards that will be recognized over the average remaining vesting period of 1.5 years totals $3.8 million. At December 31, 2016, the intrinsic value of unvested restricted stock awards is $7.7 million. The Plan terminates on May 24, 2017.

A summary of activity under the 2007 Plan for the years ended December 31, 2016, 2015, and 2014 is as follows:


		Weighted Average		Aggregate Grant
	Number Outstanding	Grant Date Fair Value		Date Fair Value
Balance as of December 31, 2013	515,130	$	13.71	$	7,060,474
Shares granted	237,708		19.84		4,710,362
Shares cancelled	(5,750)		14.02		(80,630)
Shares vested	(221,732)		13.24		(2,903,595)
Balance as of December 31, 2014	525,356	$	13.71	$	8,786,611
Shares granted	146,440		18.53		2,713,159
Shares cancelled	—		—		—
Shares vested	(275,201)		15.87		(4,368,570)
Balance as of December 31, 2015	396,595	$	17.98	$	7,131,200
Shares granted	136,645		21.55		2,944,941
Shares cancelled	(20,377)		17.79		(362,536)
Shares vested	(213,528)		17.12		(3,655,269)
Balance as of December 31, 2016	299,335	$	20.24	$	6,058,336

Employee Stock Purchase Plan: Under our Employee Stock Purchase Plan (ESPP), as amended and restated effective May 20, 2010, 250,000 shares of common stock have been reserved for issuance. The Purchase Plan was effective in September 1996. Eligible employees may designate not more than 10% of their cash compensation to be deducted each pay period for the purchase of common stock under the Purchase Plan. Participants may purchase not more than 1,000 shares or $25,000 of common stock in any one calendar year. Each January 31 and July 31 shares of common stock are purchased with the employees’ payroll deductions from the immediately preceding six months at a price per share of 85% of the lesser of the market price of the common stock on the purchase date or the market price of the common stock on the date of entry into an offering period. In 2016 and 2015, 11,014 and 10,374 shares of common stock, respectively, were issued under the Purchase Plan. We issue new shares through our transfer agent upon employee stock purchase. The weighted average per share fair value of the employee’s purchase rights under the Purchase Plan for the rights granted was $6.35, $6.17 and $3.19 for 2016, 2015 and 2014, respectively.

1996 Stock Option/Stock Issuance Plan: We granted stock options under our 1996 Stock Option/Stock Issuance Plan (the 1996 Plan), as amended and restated as of March 1, 2003, until the plan terminated in June 2006. Under this Plan, a total of 3,025,000 shares were authorized for grant. These options have a contractual term of ten years and vest at a rate of 25% annually commencing on the first anniversary of the date of grant. For shares outstanding with graded vesting, our accounting policy is to value the options as one award and recognize the associated expense on a straight-line basis over the vesting period. We issue new shares through our transfer agent upon stock option exercise. In the year ended December 31, 2014, 26,437 options were exercised with a total intrinsic value at exercise date of approximately $0.2 million. In the year ended December 31, 2015, 49,000 options were exercised with a total intrinsic value at exercise date of approximately $0.3 million. As of December 31, 2016, there are no options remaining under the 1996 Plan.