STOCK COMPENSATION PLANS

3 Months Ended

Mar. 31, 2016

NOTE 3 – STOCK COMPENSATION PLANS

On December 9, 2015, the Company's stockholders approved the 2015 Equity Compensation Plan, or the 2015 Plan, which replaced the 2005 Equity Compensation Plan, or the 2005 Plan, that expired on May 24, 2015. The 2015 Plan provides that grants may be in any of the following forms: incentive stock options, nonqualified stock options, stock units, stock awards, dividend equivalents and other stock-based awards. The 2015 Plan is administered and interpreted by the Compensation Committee of the Board of Directors, or the Committee. The Committee has the authority to determine the individuals to whom grants will be made under the 2015 Plan, determine the type, size and terms of the grants, determine the time when grants will be made and the duration of any applicable exercise or restriction period (subject to the limitations of the 2015 Plan) and deal with any other matters arising under the 2015 Plan. The Committee presently consists of three directors, each of whom is a non-employee director of the Company. All of the employees of the Company and its subsidiaries are eligible for grants under the 2015 Plan. Non-employee directors of the Company are also eligible to receive grants under the 2015 Plan.

There was no compensation expense related to stock options recorded for the three months ended March 31, 2016. For the three months ended March 31, 2015, compensation expense of approximately $33,000 was recorded for stock options granted in May 2014. Costs were determined based on the fair value at the grant date and those costs were charged to income over the service period associated with the grants.

There was no stock compensation cost capitalized as part of an asset.

The fair value of each option grant is estimated using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions used for grants issued in 2014. All options were granted at market value with a 10-year option term with a vesting period of one year from the date of grant.


Expected Dividend Yield	3.88	%
Expected Stock Price Volatility	26.50	%
Weighted Average Risk-Free Interest Rate	2.24	%
Weighted Average Expected Life of Options (in years)	7.52

The following summary reflects changes in the shares of Class A Stock underlying options for the three months ended March 31, 2016:

	Option Shares			Weighted Average Exercise Price		Weighted Average Remaining Life (Yrs.)		Aggregate Intrinsic Value (in thousands)
Plan options
Outstanding at January 1, 2016		270,000		$	19.34			$	2,256
Granted		–			–				–
Exercised		(6,750	)		21.11				30
Expired		–			–				–
Outstanding at March 31, 2016		263,250		$	19.30		4.71	$	2,280

Options exercisable at March 31, 2016		263,250		$	19.30		4.71	$	2,280

The total intrinsic value of options exercised during the three months ended March 31, 2016 was approximately $30,000.

There were no unvested option shares outstanding during the three months ended March 31, 2016.

As of March 31, 2016, there was no unrecognized expense related to non-vested option shares granted under the 2015 Plan.

On December 18, 2015, 5,000 shares of Class A common stock were issued as fully vested unrestricted stock awards. The fair market value per share was $27.38, the closing price of the Class A common stock as recorded on the Nasdaq Global Market on December 18, 2015.