Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

The exercise price of stock options granted under this plan, both incentive and non-qualified, cannot be less than the fair market value of the common stock on the date that the option is granted. The maximum term for an option granted under this plan is ten years and options granted may be subject to a vesting schedule. All of the non-qualified stock options granted under the plan had a ten year term and were subject to a vesting period. The following table summarizes options outstanding at December 31, 2015, 2014, and 2013:



	2015					2014				2013
	Shares	Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding, beginning of year	—	$	—			10,000		$	21.55	20,000		$	21.59
Granted	—	—				—		—		—		—
Exercised	—	—				(927	)	21.55		(3,872	)	21.63
Forfeited	—	—				(9,073	)	21.55		(6,128	)	21.63
Outstanding, end of year	—	$	—			—		$	—	10,000		$	21.55

Exercisable, end of year	—	$	—	$	—	—		$	—	10,000		$	21.55
Weighted average fair value of options granted during the year		$	—					$	—			$	—

Restricted Stock provides grantees with rights to shares of common stock upon completion of a service period or achievement of Company performance measures. During the restriction period, all shares are considered outstanding and dividends are paid to the grantee. Outside directors are periodically granted restricted shares which vest over a period of less than nine months. During 2015, executive officers were granted restricted shares which vest over a three year service period and restricted shares which vest based on meeting performance measures over a one year period. The following table presents the activity for Restricted Stock for the years ended December 31, 2015, 2014 and 2013:



	Twelve Months Ended
	December 31,
	2015				2014				2013
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Nonvested, beginning of period	15,151		$	22.27	17,050		$	19.92	16,500		$	16.53
Granted	14,650		23.85		14,900		23.50		14,900		22.06
Vested	(14,363	)	23.09		(14,009	)	20.75		(13,699	)	18.30
Forfeited	(1,037	)	23.50		(2,790	)	22.11		(651	)	16.75
Nonvested, end of period	14,401		$	22.98	15,151		$	22.27	17,050		$	19.92

The Company recognizes compensation expense over the restricted period. Compensation expense was $328 thousand, $290 thousand, and $305 thousand during December 31, 2015, 2014, and 2013, respectively. The total grant date fair value of Restricted Stock which vested was $332 thousand and $291 thousand for the years ended December 31, 2015 and 2014, respectively. Unrecognized compensation cost related to unvested Restricted Stock was $64 thousand at December 31, 2015. This amount is expected to be recognized over a weighted average period of one year.