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EMPLOYEE STOCK PLANS
12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
EMPLOYEE STOCK PLANS
EMPLOYEE STOCK PLANS
 
In May of 2007, our stockholders approved the 2007 Omnibus Incentive Compensation Plan to provide incentives and awards for directors, officers, and employees. “Awards” as defined in the Plan includes, with limitations, stock options (including restricted stock options), restricted stock awards, stock appreciation rights, performance shares, stock awards and cash awards, all on a stand-alone, combination, or tandem basis. The 2007 Omnibus Incentive Compensation Plan replaces the 1997 Stock Incentive Plan, which expired February of 2007.  A total of 525,000 of our common shares authorized were reserved for issuance under the Plan, of which 136,093 were available to be granted as of December 31, 2016.

Stock Options – The 298,995 options outstanding at December 31, 2016 were all issued under the 2007 Omnibus Incentive Compensation Plan.  All options outstanding at December 31, 2016 are incentive stock options with a term of ten years, 256,493 of which vest 20% each year on the anniversary date of the grant and 42,502 of which vest 16.67% each year.  The following table summarizes activity relating to stock options:
 
 
Options
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
Outstanding at December 31, 2013
 
432,642

 
$
14.13

 
 
 
 
Granted
 
17,500

 
18.99

 
 
 
 
Exercised
 
(49,560
)
 
12.97

 
 
 
 
Forfeited or expired
 
(42,509
)
 
16.24

 
 
 
 
Outstanding at December 31, 2014
 
358,073

 
$
14.28

 
 
 
 
Granted
 
5,000

 
13.17

 
 
 
 
Exercised
 
(7,655
)
 
12.97

 
 
 
 
Forfeited or expired
 
(16,042
)
 
17.73

 
 
 
 
Outstanding at December 31, 2015
 
339,376

 
$
14.13

 
 
 
 
Granted
 
5,000

 
9.30

 
 
 
 
Exercised
 

 

 
 
 
 
Forfeited or expired
 
(45,381
)
 
15.17

 
 
 
 
Outstanding at December 31, 2016
 
298,995

 
$
13.90

 
5.95
 
$

Exercisable at December 31, 2014
 
109,691

 
$
13.98

 
 
 
 

Exercisable at December 31, 2015
 
162,679

 
13.81

 
 
 
 

Exercisable at December 31, 2016
 
203,578

 
13.74

 
5.76
 
$


 
A summary of changes in unvested options for the period ended December 31, 2016 is as follows:
 
 
Number
of
Options
 
Weighted Average
Grant Date
Fair Value
Unvested options outstanding, beginning of year
 
176,697

 
$
4.89

Granted
 
5,000

 
2.14

Vested
 
(60,085
)
 
4.73

Forfeited
 
(26,195
)
 
5.36

Unvested options outstanding, end of year
 
95,417

 
$
4.72


 
As of December 31, 2016 there was a total of $291,000 in unrecognized compensation cost related to nonvested stock option grants that is expected to be recognized over a weighted-average period of 1.7 years.  The total amount of options expensed during the years ended December 31, 2016, 2015 and 2014 was $162,000, $336,000 and $442,000, respectively.
 
The fair value of each option granted is estimated on the grant date using the Black-Scholes Option Pricing Model.  This model requires management to make certain assumptions, including the expected life of the option, the risk free rate of interest, the expected volatility, and the expected dividend yield.  The risk free rate of interest is based on the yield of a U.S. Treasury security with a similar term.  The expected volatility is based on historic volatility over a term similar to the expected life of the options.  The dividend yield is based on the current yield at the date of grant.  The following assumptions were made in estimating the fair value of the options granted in 2016 and 2015:
 
 
2016
 
2015
Risk free rate of interest
 
1.7
%
 
1.5
%
Expected volatility
 
37.4
%
 
37.4
%
Dividend yield
 
4.2
%
 
2.8
%
Average expected life (in years)
 
5

 
5

Weighted-average grant-date fair value
 
$
2.14

 
$
3.17



The total intrinsic value of the options exercised was $10,000, and $217,000 for the years ended December 31, 2015 and 2014, respectively. There were no options exercised during the year ended December 31, 2016.
 
Restricted Stock Awards – During 2016 and 2015, the Compensation Committee of the Board of Directors of the Company made restricted stock grants under the Company’s 2007 Omnibus Incentive Compensation Plan.  The restricted shares of stock, which are subject to the terms of a Restricted Stock Grant Agreement between the Company and each recipient, will fully vest on the third anniversary of the grant date.  Prior to vesting, the recipient will be entitled to vote the shares and receive dividends, if any, declared by the Company with respect to its common stock.  Compensation expense for restricted stock is based on the fair value of the restricted stock awards at the time of the grant, which is equal to the market value of the Company’s common stock on the date of grant.  The value of the restricted stock grants that are expected to vest is amortized monthly into compensation expense over the three year vesting period.
 
The weighted average grant date fair value of restricted stock awards was $10.97 and $13.92 for the years ended December 31, 2016 and 2015, respectively.  For the year ended December 31, 2016 and 2015, compensation expense of $48,000 and $19,000, respectively, was recognized related to non-vested restricted stock awards. There was no compensation expenses related to these awards in 2014. As of December 31, 2016, there was $125,000 of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. The unrecognized compensation cost related to restricted stock awards at December 31, 2016 is expected to be recognized over a weighted-average period of 2.1 years.

The following table summarizes activity relating to non-vested restricted stock awards:
 
 
Number of Shares
 
Weighted-Average Grant Date Fair Value
Non-vested at December 31, 2014
 

 
$

Granted
 
11,250

 
13.92

Forfeited
 

 

Vested
 

 

Non-vested at December 31, 2015
 
11,250

 
$
13.92

Granted
 
4,439

 
10.97

Forfeited
 
(925
)
 
13.92

Vested
 

 

Non-vested at December 31, 2016
 
14,764

 
$
13.03