STOCK COMPENSATION EXPENSE (Tables)

3 Months Ended

Mar. 31, 2015

The assumptions used in the Black-Scholes option-pricing model are as follows

	2015			2014
Risk-free interest rate		1.41	%		2.78	%
Expected option life (yrs)		5.00			10.00
Expected stock price volatility		17.20	%		31.19	%
Dividend yield		3.53	%		3.33	%
Weighted average fair value of options granted during the year	$	1.37		$	3.74

A summary of the Company’s stock option activity and related information is presented below for the three months ended March 31:

	- - - - - - 2015 - - - - - -					- - - - - - 2014 - - - - - -
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of year		273,942		$	11.06		354,281		$	9.84
Grants		47,650			14.72		46,300			14.43
Exercises		(1,167	)		9.15		(8,701	)		7.24
Forfeitures or expired		(3,833	)		12.24		(2,001	)		9.30
Outstanding at March 31,		316,592		$	11.61		389,879		$	10.45

Exercisable at March 31,		224,958					278,228
Weighted average remaining life of options outstanding		6.4					6.4
Weighted average fair value of options granted during the year	$	1.37				$	3.74

Additional information regarding stock options outstanding and exercisable at March 31, 2015, is provided in the following table:

	- - - - - - - - Outstanding - - - - - - - -						- - - - - - - - Currently Exercisable - - - - - - - -
Range of Exercise Prices	Number		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value

$6.50 to $10.00		113,482	$	7.56	$	871		113,482		6.2	$	7.56	$	871
$10.01 to $12.50		40,500		11.39		156		26,374		8.0		11.39		101
$12.51 to $15.00		139,110		14.22		139		61,602		4.0		13.75		91
$15.01 to $17.50		23,500		16.00		-		23,500		0.9		16.00		-
Outstanding - Mar 31, 2015		316,592		11.61	$	1,166		224,958		5.2		10.58	$	1,063