13.	STOCK-BASED COMPENSATION

The Company maintains a stock incentive plan under which incentive and nonqualified stock options and other stock awards

may

be granted. On

March 13, 2014,

the Company’s Board of Directors adopted, and on

May 29, 2014

our shareholders approved, the

2014

Amended and Restated Stock Option and Incentive Plan (the “Plan”) which amended and restated the Company’s

2006

Stock Option Plan. Under the Plan,

750,000

shares are reserved for the issuance of stock awards to directors, officers, key employees, and others. The stock option exercise price and the restricted stock purchase price under the

2014

Plan shall

not

be less than

85%

of the fair market value of the Company’s common stock on the date the award is granted. The fair market value is determined by the closing price of the Company’s common stock, on its primary exchange, on the same date that the option or award is granted.

April 2019,

the Company granted

1,845

shares of common stock to non-employee directors. These stock awards have a grant date fair value of

$48.94

per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.

May 2019,

the Company granted

213

shares of common stock to a non-employee director. These stock awards have a grant date fair value of

$47.06

per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.

December 2018,

the Company granted

33,000

restricted shares of common stock to certain key employees. These restricted stock awards have a grant date fair value of

$36.35

per share, based on the closing price of the Company’s stock on the date of grant, with

one

fourth

of the award vesting each of the next

four

years on the anniversary date.

March 2018,

the Company granted

1,932

shares of common stock to non-employee directors. These stock awards have a grant date fair value of

$36.35

per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.

April 2017,

the Company granted

100,000

restricted shares of common stock to the Company’s Chief Executive Officer. This restricted stock award has a grant date fair value of

$16.38,

based on the closing price of the Company’s stock on the date of grant, with

one

third

of the award vesting each of the next

three

years on the anniversary date.

March 2017,

the Company granted

4,298

shares of common stock to non-employee directors. These stock awards have a grant date fair value of

$16.29

per share, based on the closing price of the Company’s stock on the date of grant and vested immediately.

During

2019

and

2018,

there were

grants of stock options and there were

outstanding stock options at

December 31, 2019

December 31, 2018.

December 31, 2019,

approximately

407,000

shares were available for granting future options or restricted stock.

The grant date fair value of stock and stock options vested during

2019,

2018

and

2017

was approximately

$953,000,

$719,000

and

$256,000,

respectively. Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately

$912,000

during

2019

and includes approximately

$100,000

recognized as a result of the grant of

205

shares of stock to

nine

non-employee directors and

213

shares of stock to

one

non-employee director during the

second

quarter of

2019.

The Company recognized a total income tax benefit of approximately

$200,000

related to stock-based compensation expense during

2019.

The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately

0.12

during

2019.

As of

December

31,

2019,

the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately

$924,000

which is being amortized on a straight-line basis over the remaining vesting period. As a result, the Company expects to recognize approximately

$399,000

in additional compensation expense related to unvested restricted stock awards during

2020,

$263,000

in additional compensation expense related to unvested restricted stock awards during

2021,

and

$262,000

in additional compensation expense related to unvested restricted stock awards during

2022.

Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately

$732,000

during

2018

and includes approximately

$70,000

recognized as a result of the grant of

276

shares of stock to each non-employee director during the

first

quarter of

2018.

The Company recognized a total income tax benefit of approximately

$172,000

related to stock-based compensation expense during

2018.

The recognition of stock-based compensation expense decreased diluted and basic earnings per common share by approximately

$0.09

and

$0.10,

respectively, during

2018.

Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately

$614,000

during

2017

and included approximately

$70,000

recognized as a result of the grant of

614

shares of stock to each non-employee director during the

first

quarter of

2017.

The Company recognized a total income tax benefit of approximately

$231,000

related to stock-based compensation expense during

2017.

The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately

$0.26

during

2017.

Transactions in stock options under these plans are summarized as follows:

	Shares Under Option			Weighted- Average Exercise Price
Outstanding—January 1, 2017:		56,131		$	10.85
Granted		-			-
Exercised		(11,063	)		11.13
Canceled		-			-
Outstanding—December 31, 2017:		45,068		$	10.79
Granted		-			-
Exercised		(45,005	)		10.79
Canceled		(63	)		11.22
Outstanding—December 31, 2018:		-		$	-
Granted		-			-
Exercised		-			-
Canceled		-			-
Outstanding—December 31, 2019:		-		$	-
Options exercisable—December 31, 2019:		-		$	-

There were

options granted during

2019,

2018,

2017.

There were

options canceled, forfeited, or expired during

2017.

The weighted-average grant-date fair value of options canceled, forfeited, or expired during

2018

was

$6.34.

The total intrinsic value of options exercised during the years ended

December 31, 2018

and

2017,

were approximately

$1,406,000

and

$82,000,

respectively.

A summary of the status of the Company’s non-vested restricted stock as of

December 31, 2019

and changes during the year ended

December 31, 2019,

is presented below:

	Restricted Stock
	Number of Shares			Weighted- Average Grant Date Fair Value
Nonvested at January 1, 2019		100,917		$	23.09
Granted		2,058			48.75
Canceled/forfeited/expired		(3,500	)		36.35
Vested		(44,016	)		21.65
Nonvested at December 31, 2019		55,459		$	24.35

Cash received from option exercises totaled approximately

$0,

$485,000

and

$123,000

during the years ended

December 31, 2019,

2018

and

2017,

respectively. The Company issued new shares upon option exercise.