Share Based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE BASED COMPENSATION

The 2014 Long-Term Incentive Plan (“2014 LTIP”) was adopted by our shareholders in May 2014 to enhance the ability of the Company to attract and retain exceptionally qualified individuals to serve as key employees. The LTIP provides for the issuance of up to 500,000 shares of common stock, in the form of equity awards including stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, other stock-based awards or any combination thereof, to our key employees. No awards have been granted under the 2014 LTIP.

Stock options awarded under the 2009 Officer Stock Option Plan and the 1998 Officer Stock Option Plan (collectively, the “Plans”) were not altered by the 2014 LTIP, and remain subject to the terms of the Plans. However, under the terms of the 2014 LTIP, all shares of common stock remaining issuable under the Plans at the time the 2014 LTIP was adopted ceased to be available for future issuance.

The fair value of our employee stock options granted under the Plans is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Because our employee stock options have characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options at the time of grant. There were no options granted during the first nine months of 2014 or 2013.

We recognize compensation expense based on the estimated number of stock awards expected to actually vest, exclusive of the awards expected to be forfeited. During the first nine months of 2014 and 2013, our stock compensation expense and related deferred taxes were insignificant.

A summary of activity in our Plans during the first nine months of 2014 and 2013 is as follows:



	For the Nine Months Ended September 30,
	2014				2013
	Options		Weighted-Average Exercise Price		Options		Weighted-Average Exercise Price
Outstanding, January 1	185,410		$	19.59	249,700		$	18.98
Granted	—		—		—		—
Exercised	(3,200	)	4.63		(15,200	)	5.27
Forfeited	—		—		(1,750	)	19.69
Expired	(2,500	)	17.43		(39,700	)	23.41
Outstanding, September 30	179,710		$	19.89	193,050		$	19.14

Other information regarding options outstanding and exercisable at September 30, 2014 is as follows:



	Options Outstanding						Options Exercisable
Range of exercise price	# of shares	WAEP		Wted. Avg. Remaining Contractual Life (yrs)	Aggregate Intrinsic Value (in thousands)		# of shares	WAEP		Aggregate Intrinsic Value (in thousands)
2.54 - $6.00	13,550	$	4.69	3.95	$	76	12,550	$	4.86	$	68
6.01 - 10.00	23,160	9.07		2.48	27		23,160	9.07		27
10.01 - 17.50	—	—		0	—		—	—		—
17.51 - 20.00	38,500	17.80		2.25	—		38,500	17.80		—
20.01 - 25.93	104,500	25.04		1.99	—		104,500	25.04		—
	179,710	19.89			$	103	178,710	19.99		$	95

- 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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