Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

F. STOCK-BASED COMPENSATION:

The Company, from time to time, enters into separate non-vested share-based payment arrangements with employees and executive officers under the Incentive Compensation Plan approved by stockholders on May 18, 2010, which authorized 50,000 shares to be available for grants. The Compensation Committee of the Company’s Board of Directors approves all stock-based compensation awards for employees and executive officers of the Company. The Company grants restricted stock that is subject to continued employment and vesting conditions, but has dividend and voting rights, and uses the fair-market value of the Company’s common stock on the grant date to measure the fair value of the awards. The fair value of restricted stock is recognized as expense ratably over the requisite serviced period, net of estimated forfeitures.

During 2015, 2014, and 2013, the Company granted 5,779, 7,367 and 8,102 shares of restricted stock, respectively, to 21 employees and executive officers of the Company. Unless otherwise vested early in accordance with the Incentive Compensation Plan, the restricted stock vests on specified dates in 2018 through 2021, subject to the recipients’ continued employment or service through each applicable vesting date.

The Company recognized pre-tax compensation expense in the Consolidated Statements of Comprehensive Income related to stock-based compensation of $333,000, $265,000, and $123,000 in 2015, 2014, and 2013, respectively. As of December 31, 2015, there was approximately $1,258,000 of unrecognized compensation cost related to the restricted stock awards that is expected to be recognized over a weighted-average period of 3.9 years. There were 2,570, 0, and 0 shares of restricted stock that vested during 2015, 2014, and 2013, respectively.

The following table summarizes the activity for non-vested restricted stock:



	2015			2014			2013
	Shares	Weighted Average Fair Value at Grant Date		Shares	Weighted Average Fair Value at Grant Date		Shares	Weighted Average Fair Value at Grant Date
Non-vested at beginning of period	23,668	$	79.02	16,301	$	84.96	8,393	$	96.28
Granted	5,779		84.90	7,367		65.87	8,102		73.28
Vested	(2,570)		103.65	0			0
Forfeited	(290)		78.12	0			(194)		86.97
Non-vested at end of period	26,587	$	78.02	23,668	$	79.02	16,301	$	84.96