Note 24: Stock Option Plans

Under the Company’s stock option plans, which are accounted for in accordance with FASB ASC 718, Stock Compensation, the Company grants selected executives and other key employees and directors incentive and non-qualified stock option awards that vest and become fully exercisable at the discretion of the Compensation Committee as the options are granted. The Company had stock option plans that were approved in 2000 and 2008 that expired in 2015 and 2018, respectively. Under the plan’s provisions, all option grants that have not been exercised or expired are still exercisable until the maturity or the participant forfeits the grant. No additional grants of options can be made from these plans.

The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatility is based on historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate timing of option exercises and employee terminations within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted represents the period of time that options are expected to be outstanding; the range given below results from certain groups of employees exhibiting different behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The discount rate for post-vesting restrictions is estimated based on the Company’s credit-adjusted risk-free rate of return.

The following is a summary of the status of the Company’s stock option plans and changes in these plans during 2019.


	2019
		Weighted		Weighted		Aggregate
		Average		Average		Intrinsic
		Exercise		Remaining		Value
Options	Shares	Price		Contractual Life		(in thousands)
Outstanding, beginning of year	210,862	$	7.63
Exercised	140,962		7.43
Outstanding and exercisable, end of year	69,900	$	8.03	4.9	years	$	2,211

There were 140,962, 28,538 and 65,161 options exercised during the years ended December 31, 2019, 2018 and 2017. There were no options granted during those periods. The Company will fulfill options with authorized but unissued shares of stock from the 352,741 shares the Company has authorized under the 2008 shareholder-approved stock option and incentive plan. The Company will also fulfill options with authorized but unissued shares of stock from the 141,462 shares the Company has authorized under the 2000 stock option plan. Outstanding options may continue to be exercised from these plans; however no further grants can be made.

Cash received from options exercised under all share-based payment arrangements for years ended December 31, 2019, 2018 and 2017 was $1.0 million, $253,000 and $1.2 million, respectively. The intrinsic value on options exercised during the years ended December 31, 2019, 2018 and 2017 was $4.0 million, $722,000 and $1.1 million, respectively.