13) Equity Plan

The Company maintained an Amended and Restated 2004 Equity Plan (the "2004 Plan") for directors, officers, and key employees. The 2004 Plan was terminated on May 23, 2013. On May 23, 2013, the Company's shareholders approved the 2013 Equity Incentive Plan (the "2013 Plan"). The equity plans provide for the grant of incentive and nonqualified stock options and restricted stock. The equity plans provide that the option price for both incentive and nonqualified stock options will be determined by the Board of Directors at no less than the fair value at the date of grant. Options granted vest on a schedule determined by the Board of Directors at the time of grant. Generally options vest over four years. All options expire no later than ten years from the date of grant. Restricted stock is subject to time vesting. In 2015, the Company granted 243,000 shares of nonqualified stock options and 103,855 shares of restricted stock subject to time vesting requirements. There were 940,985 shares available for the issuance of equity awards under the 2013 Plan as of December 31, 2015.

Stock option activity under the equity plans is as follows:

Total Stock Options	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2015		1,726,106		$	11.23
Granted		243,000		$	9.50
Exercised		(54,406	)	$	5.79
Forfeited or expired		(139,673	)	$	18.12

Outstanding at December 31, 2015		1,775,027		$	10.62		5.8	$	6,381,061


Vested or expected to vest		1,686,276					5.8	$	6,062,008


Exercisable at December 31, 2015		1,259,434					4.7	$	4,527,179

Information related to the equity plans for each of the last three years:

	2015		2014		2013
Intrinsic value of options exercised	$	216,681	$	258,467	$	51,000
Cash received from option exercise	$	315,076	$	262,035	$	88,000
Tax benefit realized from option exercises	$	85,411	$	102,710	$	17,245
Weighted average fair value of options granted	$	3.15	$	3.90	$	3.84

As of December 31, 2015, there was $1,842,000 of total unrecognized compensation cost related to nonvested stock options granted under the equity plans. That cost is expected to be recognized over a weighted-average period of approximately 2.48 years.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table, including the weighted average assumptions for the option grants in each year.

	2015			2014			2013
Expected life in months(1)		72			84			96
Volatility(1)		47	%		57	%		54	%
Weighted average risk-free interest rate(2)		1.57	%		2.09	%		1.49	%
Expected dividends(3)		3.37	%		2.06	%		0.12	%

(1)The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding based on historical experience. Volatility is based on the historical volatility of the stock price over the same period of the expected life of the option.

(2)Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the option granted.

(3)Each grant's dividend yield is calculated by annualizing the most recent quarterly cash dividend and dividing that amount by the market price of the Company's common stock as of the grant date.

The Company estimates the impact of forfeitures based on historical experience. Should the Company's current estimate change, additional expense could be recognized or reversed in future periods. The Company issues authorized shares of common stock to satisfy stock option exercises.

Restricted stock activity under the equity plans is as follows:

Total Restricted Stock Award	Number of Shares			Weighted Average Grant Date Fair Value
Nonvested shares at January 1, 2015		100,000		$	8.25
Granted		103,855		$	9.80
Vested		(31,250	)	$	7.81
Forfeited or expired		(5,000	)	$	8.70

Nonvested shares at December 31, 2015		167,605		$	9.28

As of December 31, 2015, there was $1,363,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2004 Plan and 2013 Plan. The cost is expected to be recognized over a weighted-average period of approximately 3.16 years.