Equity-Based Compensation Plan

12 Months Ended

Dec. 31, 2017

Disclosure Of Share Based Compensation Arrangements By Share Based Payment Award Text Block

NOTE 21 – EQUITY-BASED COMPENSATION PLAN

The Omnibus Plan provides for equity-based compensation incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, and dividend equivalents, as well as equity-based performance awards. The Omnibus Plan replaced and superseded the Stock Option Plans. All outstanding stock options under the Stock Option Plans continue in full force and effect, subject to their original terms.

The activity in outstanding options for the years ended December 31, 2017, 2016 and 2015 is set forth below:

	Year Ended December 31,
	2017			2016			2015
		Weighted			Weighted			Weighted
	Number	Average		Number	Average		Number	Average
	Of	Exercise		Of	Exercise		Of	Exercise
	Options	Price		Options	Price		Options	Price
Beginning of year	917,269	$	14.08	951,523	$	12.45	888,571	$	14.12
Options granted	-		-	-		-	179,225		17.44
Options exercised	(71,150)		12.96	(24,752)		12.43	(112,704)		19.78
Options forfeited	(500)		15.23	(9,502)		16.68	(3,569)		16.06
End of year	845,619	$	14.14	917,269	$	14.08	951,523	$	12.45

The following table summarizes the range of exercise prices and the weighted average remaining contractual life of the options outstanding at December 31, 2017:

	Outstanding					Exercisable
					Weighted
					Average
			Weighted		Contract Life			Weighted
	Number of		Average		Remaining	Number of		Average
Range of Exercise Prices	Options		Exercise Price		(Years)	Options		Exercise Price
$5.63 to $8.45		4,078		8.28	1.3		4,078		8.28
11.27 to 14.08		388,241		11.85	3.0		388,241		11.85
14.09 to 16.90		286,575		15.38	5.7		176,025		15.22
16.91 to 19.71		165,225		17.44	7.2		41,305		17.44
19.72 to 22.53		1,500		21.86	0.2		1,500		21.86
		845,619	$	14.14	4.7		611,149	$	13.20
Aggregate Intrinsic Value	$	-				$	-

The average fair value of each option granted $5.77 during 2015. There were no options granted during 2017 and 2016. The average fair value of each option granted was estimated at the date of the grant using the Black-Scholes option pricing model. The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no restrictions and are fully transferable and negotiable in a free trading market. Black-Scholes does not consider the employment, transfer or vesting restrictions that are inherent in Oriental’s stock options. Use of an option valuation model, as required by GAAP, includes highly subjective assumptions based on long-term predictions, including the expected stock price volatility and average life of each option grant.

The following assumptions were used in estimating the fair value of the options granted during the year ended December 31, 2015, since there were no options granted during the years ended December 31, 2017 and 2016.

	Year Ended December 31,
	2017	2016	2015
Weighted average assumptions:
Dividend yield	N/A	N/A	1.89%
Expected volatility	N/A	N/A	40.93%
Risk-free interest rate	N/A	N/A	2.41%
Expected life (in years)	N/A	N/A	8.0

The following table summarizes the activity in restricted units under the Omnibus Plan for the years ended December 31, 2017, 2016 and 2015:

	Year Ended December 31,
	2017			2016			2015
		Weighted			Weighted			Weighted
		Average			Average			Average
	Restricted	Grant Date		Restricted	Grant Date		Restricted	Grant Date
	Units	Fair Value		Units	Fair Value		Units	Fair Value
Beginning of year	59,800	$	16.64	138,400	$	16.17	153,050	$	14.95
Restricted units granted	83,000		13.31	-		-	26,700		16.66
Restricted units lapsed	(33,100)		16.10	(76,903)		16.04	(39,750)		11.83
Restricted units forfeited	(3,900)		16.79	(1,697)		17.02	(1,600)		15.45
End of year	105,800	$	14.19	59,800	$	16.64	138,400	$	16.17

The total unrecognized compensation cost related to non-vested restricted units to members of management at December 31, 2017 was $1.7 million and is expected to be recognized over a weighted-average period of 1.9 years.