8. Share Based Compensation

We maintain share based payment plans that include a non-employee director stock purchase plan and a long-term incentive plan that permits the issuance of share based compensation, including stock options and non-vested share awards. The long-term incentive plan, which is shareholder approved, permits the grant of additional share based awards for up to 0.5 million shares of common stock as of March 31, 2018. The non-employee director stock purchase plan permits the issuance of additional share based payments for up to 0.2 million shares of common stock as of March 31, 2018. Share based awards and payments are measured at fair value at the date of grant and are expensed over the requisite service period. Common shares issued upon exercise of stock options come from currently authorized but unissued shares.

During the three month periods ended March 31, 2018 and 2017, pursuant to our long-term incentive plan, we granted 0.04 million and 0.05 million shares of restricted stock, respectively and 0.02 million and 0.02 million performance stock units (“PSU”), respectively to certain officers. Except for 0.002 million shares of restricted stock issued in 2018 that vest ratably over three years, the shares of restricted stock and PSUs cliff vest after a period of three years. The performance feature of the PSUs is based on a comparison of our total shareholder return over the three year period starting on the grant date to the total shareholder return over that period for a banking index of our peers.

Our directors may elect to receive a portion of their quarterly cash retainer fees in the form of common stock (either on a current basis or on a deferred basis pursuant to the non-employee director stock purchase plan referenced above). Shares equal in value to that portion of each director’s fees that he or she has elected to receive in stock are issued each quarter and vest immediately. We issued 0.002 million shares during each three month period ended March 31, of 2018 and 2017 and expensed their value during those same periods.

Total compensation expense recognized for grants pursuant to our long-term incentive plan was $0.4 million during each three month period ended March 31, 2018 and 2017. The corresponding tax benefit relating to this expense was $0.1 million for each period. Total expense recognized for non-employee director share based payments was $0.05 million and $0.04 million during the three months ended March 31, 2018 and 2017, respectively. The corresponding tax benefit relating to this expense was $0.01 million for each period.

At March 31, 2018, the total expected compensation cost related to non-vested restricted stock and PSUs not yet recognized was $3.0 million. The weighted-average period over which this amount will be recognized is 2.3 years.

A summary of outstanding stock option grants and related transactions follows:

	Number of Shares			Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregated Intrinsic Value
								(In thousands)
Outstanding at January 1, 2018		176,055		$	5.24
Granted		-
Exercised		(3,800	)		3.39
Forfeited		-
Expired		-
Outstanding at March 31, 2018		172,255		$	5.28		3.8	$	3,035

Vested and expected to vest at March 31, 2018		172,255		$	5.28		3.8	$	3,035
Exercisable at March 31, 2018		172,255		$	5.28		3.8	$	3,035

A summary of outstanding non-vested restricted stock and PSUs and related transactions follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding at January 1, 2018		290,527		$	15.88
Granted		64,406			23.58
Vested		(95,036	)		13.14
Forfeited		(6,028	)		17.70
Outstanding at March 31, 2018		253,869		$	18.82

Certain information regarding options exercised during the periods follows:

	Three Months Ended March 31,
	2018		2017
	(In thousands)
Intrinsic value	$	78	$	279
Cash proceeds received	$	13	$	66
Tax benefit realized	$	16	$	98