The Company’s 2015 Equity Incentive Plan (the “Plan”) was adopted by the Company and approved by its shareholders in April 2015. The maximum number of shares of common stock that may be issued pursuant to stock-based awards under the Plan equals 1,000,000 shares, all of which may be subject to incentive stock option treatment. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have vesting periods ranging from 5 to 10 years and have 10-year contractual terms. Restricted stock awards vest under the period of restriction specified within their respective award agreements as determined by the Company.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer group averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes in to account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on U.S. Treasury yield curve in effect at the time of the grant.

The fair value of options granted was determined using the following weighted-average assumptions as of grant date, for the years ended December 31:

	2019			2018			2017
Risk-free interest rate		2.11	%		2.87	%		2.00	%
Expected term (in years)		6.50			6.50			6.46
Expected stock price volatility		19.89	%		20.10	%		18.54	%
Dividend yield		2.36	%		1.76	%		1.61	%

2019	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding at beginning of year		537,872		$	26.49		6.97	$	2,088
Granted		39,000			29.89		9.40		117
Exercised		(37,672	)		24.55		4.11		314
Forfeited		(31,200	)		30.04		8.02		89
Balance, December 31, 2019		508,000		$	26.68		6.24	$	3,159

Exercisable at end of period		256,880		$	25.21		5.18	$	1,971

2018	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding at beginning of year		469,044		$	25.11		7.32	$	2,623
Granted		101,000			32.29		9.51		5
Exercised		(14,372	)		22.74		4.33		102
Forfeited		(17,800	)		26.07		6.71		96
Balance, December 31, 2018		537,872		$	26.49		6.97	$	2,088

Exercisable at end of period		206,312		$	24.48		5.65	$	1,113

A summary of nonvested activity in the Plan during the years ended December 31 follows:

2019	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding at beginning of year		331,560		$	27.74		7.77	$	975
Granted		39,000			29.89		9.40		117
Vested		(91,040	)		26.71		6.02		563
Forfeited		(28,400	)		33.00		8.81		89
Balance, December 31, 2019		251,120		$	28.18		7.31	$	1,188

2018	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding at beginning of year		334,400		$	25.72		7.91	$	1,673
Granted		101,000			32.29		9.51		5
Vested		(88,440	)		25.51		6.69		400
Forfeited		(15,400	)		30.14		7.76		96
Balance, December 31, 2018		331,560		$	27.74		7.77	$	975

A summary of activity in the Plan during years ended December 31, 2019 and 2018 follows:

2019	Number of Shares			Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		959		$	31.57
Vested		480			31.57
Released		(1,439	)		31.57
Forfeited		—			—
Balance, December 31, 2019		—		$	—

2018	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		—	$	—
Vested		959		31.57
Released		—		—
Forfeited		—		—
Balance, December 31, 2018		959	$	31.57

A summary of nonvested activity in the Plan during the twelve months ended December 31, 2019 and 2018 follows:

2019	Number of Shares			Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		1,439		$	31.57
Granted		30,500			30.25
Vested		(480	)		31.57
Forfeited		—			—
Balance, December 31, 2019		31,459		$	30.29

2018	Number of Shares			Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		2,398		$	31.57
Granted		—			—
Vested		(959	)		31.57
Forfeited		—			—
Balance, December 31, 2018		1,439		$	31.57

Restricted stock granted to employees typically vests over five years, but vesting periods may vary. Compensation expense for these grants will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date.

	2019		2018		2017
Intrinsic value of options exercised	$	314	$	102	$	132
Cash received from options exercised		925		327		84
Weighted average fair value of options granted		16.07		6.69		7.91

As of December 31, 2019, there was $2,069 of total unrecognized compensation expense related to unvested stock options granted under the Plan. The expense is expected to be recognized over a weighted-average period of 3.44 years.

The Company granted options under the Plan in 2019, 2018 and 2017. Expense of $663, $592 and $355 was recorded during the years ended December 31, 2019, 2018 and 2017, respectively, which represents the fair value of shares vested during those years.

On June 1, 2017, the Company terminated the Guaranty Bancshares, Inc. Fair Market Value Stock Appreciation Rights Plan, paid all accrued benefits through the termination date and issued equivalent stock options to the plan holders that expire 10 years from the issuance date. Expense associated with stock appreciation rights in 2017 was $318. There were no SARs granted in 2018 or 2019.