STOCK COMPENSATION PLANS

Under the Company’s 2003 Stock Option Plan, the Company was able to grant options for up to 300,000 shares of common stock to employees, officers, directors and directors emeriti. Under the Company's 2014 Equity Incentive Plan, the Company is able to grant options and awards of restricted stock (with or without performance measures) for up to 352,366 shares of common stock to employees, officers, directors and directors emeriti. Shares issued may be purchased in the open market or may be issued from authorized and unissued shares. The exercise price of each option equals the fair market value of the Company’s common stock on the date of grant. Generally, options and restricted stock vest in 20% annual installments on each of the five anniversaries from the date of the grant, and options generally have a maximum contractual term of ten years from the date of grant. At December 31, 2019, there were 29,526 shares of common stock available which may be awarded as options or restricted stock pursuant to future grant under the 2014 Equity Incentive Plan.

At both December 31, 2019 and 2018, there were no unvested restricted stock awards. There were no restricted stock grants awarded during the three months ended December 31, 2019 or 2018.

Stock option activity for the three months ended December 31, 2019 and 2018 is summarized as follows:



	Three Months Ended December 31, 2019				Three Months Ended December 31, 2018
	Number of Shares		Weighted Average Exercise Price		Number of Shares		Weighted Average Exercise Price
Options outstanding, beginning of period	378,304		$	18.15	380,820		$	16.03
Exercised	(16,975	)	10.03		(7,400	)	9.55
Granted	1,000		26.50		—		—
Forfeited	(450	)	15.99		(3,700	)	18.03
Options outstanding, end of period	361,879		$	18.56	369,720		$	16.14

The weighted average assumptions for options granted during the three months ended December 31, 2019 were as follows:



Expected volatility	29		%
Expected life (in years)	5
Expected dividend yield	3.36		%
Risk free interest rate	1.61		%
Grant date fair value per share	$	4.98

The aggregate intrinsic value of options exercised during the three months ended December 31, 2019 and 2018 was $284,000 and $142,000, respectively.

At December 31, 2019, there were 161,750 unvested options with an aggregate grant date fair value of $610,000, all of which the Company assumes will vest. The aggregate intrinsic value of unvested options at December 31, 2019 was $867,000. There were no options vested during the three months ended December 31, 2019.

At December 31, 2018, there were 174,850 unvested options with an aggregate grant date fair value of $527,000. There were 18,200 options with an aggregate grant date fair value of $164,000 that vested during the three months ended December 31, 2018.

Additional information regarding options outstanding at December 31, 2019 is as follows:



	Options Outstanding				Options Exercisable
Range of Exercise Prices ($)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
$ 4.01 - 4.55	1,000	$	4.01	1.9	1,000	$	4.01	1.9
5.86 - 6.00	19,100	5.97		2.8	19,100	5.97		2.8
9.00	44,425	9.00		3.8	44,425	9.00		3.8
10.26 - 10.71	102,564	10.59		5.3	79,314	10.58		5.3
15.67	46,000	15.67		6.8	25,000	15.67		6.8
26.50 - 27.14	47,840	27.13		9.8	—	N/A		N/A
29.69	55,500	29.69		7.8	22,200	29.69		7.8
31.80	45,450	31.80		8.8	9,090	31.80		8.8
	361,879	$	18.56	6.6	200,129	$	13.48	5.3

The aggregate intrinsic value of options outstanding at December 31, 2019 and 2018 was $4.14 million and $3.13 million, respectively.

As of December 31, 2019, unrecognized compensation cost related to unvested stock options was $559,000, which is expected to be recognized over a weighted average life of 2.33 years.