At the Company had stock incentive plans as described below. The compensation cost that has been charged to earnings for the plans was approximately million and million for the months ended and respectively.

The Company’s Amended and Restated Stock Incentive Plan authorizes the grant of up to shares and allows for the issuance of Stock Appreciation Rights, Restricted Stock, Stock Options, Non-stock Share Equivalents, Performance Shares or Performance Units. Both plans allow for the grant of incentive stock options and non-qualified stock options, and option awards are granted with an exercise price equal to the fair market value of the Company’s common stock at the date of grant. The maximum term of the options granted under the plans is years.

 

The Company estimates the fair value of each stock option award using a Black-Scholes-Merton valuation model which incorporates the assumptions noted in the following table. Expected volatilities are based on an index of southeastern United States publicly traded banks. The expected term for options granted is based on the short-cut method and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U. S. Treasury yield curve in effect at the time of grant.

 

		2019				2018
Expected volatility			40.00	%			23.43	%
Expected dividends			1.76	%			1.07	%
Expected term (in years)			6.3				6.3
Risk-free rate			2.61	%			2.67	%

 

The weighted average grant-date fair value of options granted during the months ended and was and respectively.

 

The following table summarizes stock option activity during the months ended and

 

		Shares				Weighted Average Exercise Price				Weighted Average Remaining Contractual Term (years)				Aggregate Intrinsic Value
														(In Thousands)
Three Months Ended March 31, 2019:
Outstanding January 1, 2019			1,238,748			$	13.02				5.2			$	23,355
Granted			6,000				34.09				9.8				(2	)
Exercised			(162,500	)			4.59				1.7				4,384
Forfeited			–				–				–				–
Outstanding March 31, 2019			1,082,248				14.41				6.3			$	21,318
Exercisable March 31, 2019			354,800			$	8.40				4.0			$	9,356
Three Months Ended March 31, 2018:
Outstanding January 1, 2018			1,666,834			$	10.68				5.5			$	51,377
Granted			10,250				41.21				9.9				(4	)
Exercised			(173,836	)			4.90				3.4				6,244
Forfeited			(1,000	)			25.41				8.5				15
Outstanding March 31, 2018			1,502,248				11.54				5.5			$	43,978
Exercisable March 31, 2018			672,600			$	5.48				3.9			$	23,770

 

As of there was million of total unrecognized compensation cost related to non-vested stock options. The cost is expected to be recognized on the straight-line method over the next years.

 

 

The Company periodically grants restricted stock awards that vest upon service conditions. Dividend payments are made during the vesting period. The value of restricted stock is determined to be the current value of the Company’s stock, and this total value will be recognized as compensation expense over the vesting period. There were shares of restricted stock granted to employees during the quarter of There were shares of restricted stock granted to employees during the quarter of As of there was million of total unrecognized compensation cost related to non-vested restricted stock. As of non-vested restricted stock had a weighted average remaining time to vest of years.