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Stock Plans and Stock Based Compensation
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock Plans and Stock Based Compensation Stock Plans and Stock Based Compensation
 
In 2019, the 2009 Tompkins Financial Corporation Equity Plan (“2009 Equity Plan”) expired and was replaced by the new Tompkins Financial Corporation 2019 Equity Plan (“2019 Equity Plan”). Under the 2019 Equity Plan, the Company may grant stock appreciation rights ("SARs"), shares of restricted stock and restricted units and performance share awards covering up to 1,275,000 shares of the Company's common stock to certain officers, employees, and nonemployee directors. Additionally, restricted stock awards and restricted units and performance share awards will reduce the shares available for grant under the 2019 Equity Plan by 4.25 shares for each share subject to an award, resulting in a total number of full-value share awards that may be issued under the 2019 Plan to 300,000. Stock options and SARs are granted at an exercise price equal to the stock’s fair value at the date of grant, may not have a term in excess of ten years, and have vesting periods that range between five and seven years from the grant date. Restricted stock awards have vesting periods that range between four and seven years, and restricted units vest in five years from grant date, and have grant date fair values that equal the closing price of the Company’s common stock on grant date.
 
The Company granted 86,411 equity awards to its employees in 2020, consisting of 69,451 shares of restricted stock, 6,545 performance share awards and 10,415 restricted stock units. The Company granted 62,360 equity awards to its employees in 2019, consisting of 49,365 shares of restricted stock, 4,650 performance share awards and 8,345 restricted stock units. The Company granted 65,785 equity awards to its employees in 2018, consisting of 65,785 shares of restricted stock.
The following table presents the activity related to stock options and SARs under all plans for the year ended December 31, 2020.  
Number of Shares/RightsWeighted Average Exercise PriceWeighted Average Remaining Contractual TermAggregate Intrinsic Value
Outstanding at January 1, 2020157,622 $49.72 
Granted0 0.00 
Exercised(13,235)39.98 
Forfeited0 0.00 
Outstanding at December 31, 2020144,387 $50.61 3.48$2,991,656 
Exercisable at December 31, 2020118,697 $49.17 3.23$2,622,344 

Total stock-based compensation expense for stock options and SARs was $194,000 in 2020, $235,000 in 2019, and $304,000 in 2018. As of December 31, 2020, unrecognized compensation cost related to unvested stock options and SARs totaled $191,000. The cost is expected to be recognized over a weighted average period of 1.3 years. Net cash proceeds, tax benefits and intrinsic value related to total stock options, SARs, and restricted stock exercised is as follows: 

(in thousands)202020192018
Proceeds from stock option exercises$(253)$(992)$(540)
Tax benefits related to stock option exercises156 944 680 
Intrinsic value of stock option exercises570 2,460 1,447 

The Company uses the Black-Scholes option-valuation model to determine the fair value of incentive stock options and SARs at the date of grant. The valuation model estimates fair value based on the assumptions for the risk-free rate, expected dividend yield, volatility and expected life. The risk-free rate is the interest rate available on zero-coupon U.S. Treasury instruments with a remaining term equal to the expected term of the share option at the time of grant. The expected dividend yield is based on the dividend trends and the market price of the Company’s stock price at grant. Volatility is largely based on historical volatility of the Company’s stock price. The expected term is based upon historical experience of employee exercises and terminations as the vesting term of the grants. The fair values of the grants are expensed over the vesting periods. There were no incentive stock options or SARs granted in 2020, 2019 and 2018.
 
December 31, 2020
Options and SARs OutstandingOptions and SARs Exercisable
Range of Exercise PricesNumber OutstandingWeighted Average Remaining Contractual LifeWeighted Average Exercise PriceNumber ExercisableWeighted Average Exercise Price
$35.71-37.50
22,872 0.63$37.00 22,872 $37.00 
$37.51-41.00
24,711 2.28$40.60 24,711 $40.60 
$41.01-50.00
46,886 3.80$49.22 38,066 $49.22 
$50.01-76.90
49,696 5.07$63.01 32,881 $63.82 
$76.91-86.18
222 5.89$86.18 167 $86.18 
144,387 3.48$50.61 118,697 $49.17 
 
The following table presents activity related to restricted stock awards and restricted stock units for the year ended December 31, 2020. 
Number of SharesWeighted Average Grant Date Fair Value
Unvested at January 1, 2020247,967 $73.66 
Granted86,411 63.44 
Vested(73,272)64.06 
Forfeited(6,117)75.98 
Unvested at December 31, 2020254,989 $70.55 

The Company granted 69,451 restricted stock awards, 10,415 restricted stock units and 6,545 performance share awards in 2020, each at an average grant date fair value of $63.44. The Company granted 49,365 restricted stock awards, 8,345 restricted stock units and 4,650 performance share awards in 2019, each at an average grant date fair value of $89.21. The Company granted 65,785 restricted stock awards in 2018 at an average grant date fair value of $75.44. The grant date fair values were the closing prices of the Company’s common stock on the grant dates. The Company recognized stock-based compensation related to restricted stock awards, restricted stock units, and performance share awards of $4.7 million in 2020, $4.0 million in 2019, and $3.2 million in 2018. Unrecognized compensation costs related to restricted stock and performance awards, and restricted stock units totaled $13.5 million at December 31, 2020 and will be recognized over 3.4 years and 4.5 years, respectively on a weighted average basis.