Stock-Based Incentive Plan

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Incentive Plan

Stock-Based Incentive Plan

The Corporation has a shareholder approved 2013 Long-Term Incentive Plan, which replaced the expired 2003 Long-Term Incentive Plan. In December 2018, the Corporation's Board of Directors approved an Amended and Restated Univest 2013 Long-Term Incentive Plan (the Plan) to allow for the issuance of restricted stock units.

During the three months ended March 31, 2019, the Corporation issued to directors and employees (“grantees”) restricted stock units rather than restricted stock awards or stock options, which were issued to grantees in prior reporting periods. Restricted stock units differ from restricted stock awards in that Corporation stock is not issued to grantees at the date of the grant and the grantee does not have voting or dividend rights during the vesting period. In the following schedules, issued restricted stock units have been combined with restricted stock awards, as the determination of the value at the grant date and methodology for recording stock-based compensation expense is the same for restricted stock units and restricted stock awards. 

The following is a summary of the Corporation's stock option activity and related information for the nine months ended September 30, 2019:

(Dollars in thousands, except per share data)	Shares Under Option	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value at September 30, 2019
Outstanding at December 31, 2018	597,405	$	23.98
Expired	(11,256)	24.23
Forfeited	(8,000)	26.06
Exercised	(58,545)	17.16
Outstanding at September 30, 2019	519,604	24.72		6.9	$	1,323
Exercisable at September 30, 2019	355,343	23.02		6.3	1,323

The following is a summary of nonvested stock options at September 30, 2019 including changes during the nine months then ended:

(Dollars in thousands, except per share data)	Nonvested Stock Options	Weighted Average Grant Date Fair Value
Nonvested stock options at December 31, 2018	344,230	$	6.48
Vested	(171,969)	6.42
Forfeited	(8,000)	6.43
Nonvested stock options at September 30, 2019	164,261	6.54

The following aggregated assumptions were used to estimate the fair value of options granted during the nine months ended September 30, 2018. The Corporation did not issue stock options during the nine months ended September 30, 2019.

	Nine Months Ended September 30, 2018
Expected option life in years	6.6
Risk free interest rate	2.80	%
Expected dividend yield	2.81	%
Expected volatility	27.15	%
Fair value of options	$6.46

The following is a summary of nonvested restricted stock awards and nonvested restricted stock units at September 30, 2019 including changes during the nine months then ended:

(Dollars in thousands, except per share data)	Nonvested Stock Awards and Units	Weighted Average Grant Date Fair Value
Nonvested stock awards at December 31, 2018	157,579	$	25.33
Granted	113,729	25.66
Vested	(44,807)	21.65
Cancelled	(17,736)	19.82
Nonvested stock awards and units at September 30, 2019	208,765	26.77

The fair value of restricted stock awards and units is equivalent to the fair value of the Corporation's stock on the date of grant and is amortized over the vesting period. Certain information regarding restricted stock awards and units is summarized below for the periods indicated:

	Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2019		2018
Restricted stock awards and units granted	113,729		59,953
Weighted average grant date fair value	$	25.66	$	28.39
Intrinsic value of awards vested	$	1,119	$	2,648

The total unrecognized compensation expense and the weighted average period over which unrecognized compensation expense is expected to be recognized related to nonvested stock options and nonvested restricted stock awards and units at September 30, 2019 is presented below:

(Dollars in thousands)	Unrecognized Compensation Cost		Weighted-Average Period Remaining (Years)
Stock options	$	624	1.3
Restricted stock awards and units	3,127		2.1
	$	3,751	1.9

The following table presents information related to the Corporation’s compensation expense related to stock incentive plans recognized for the periods indicated:

	Nine Months Ended September 30,
(Dollars in thousands)	2019		2018
Stock-based compensation expense:
Stock options	$	546	$	797
Restricted stock awards and units	1,372		1,582
Employee stock purchase plan	54		51
Total	$	1,972	$	2,430
Tax benefit on nonqualified stock option expense, restricted stock awards and disqualifying dispositions of incentive stock options	$	444	$	624