Stock-Based Compensation

12 Months Ended

Dec. 31, 2014

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 2014, 2013, and 2012, the Company granted 7,367, 8,102 and 1,695 shares of restricted stock, respectively, to 20 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 2015 through 2020, 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 $265,000, $123,000, and $91,000 in 2014, 2013, and 2012, respectively. As of December 31, 2014, there was approximately $1,123,000 of unrecognized compensation cost related to the restricted stock awards that is expected to be recognized over a weighted-average period of 4.0 years. There were no shares of restricted stock that vested during 2014, 2013, or 2012.

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



	2014			2013			2012
	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	16,301	$	84.96	8,393	$	96.28	6,730	$	101.26
Granted	7,367		65.87	8,102		73.28	1,695		76.43
Forfeited	0			(194)		86.97	(32)		93.60
Non-vested at end of period	23,668	$	79.02	16,301	$	84.96	8,393	$	96.28

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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