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. Forfeitures are recognized as they occur, subject to a 90-day grace period for vested options.

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.

A summary of stock option activity in the Plan during the nine months ended September 30, 2020 and 2019 follows:

Nine Months Ended September 30, 2020	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding at beginning of year		508,000		$	26.68		6.24	$	3,159
Granted		39,000			27.43		9.51		24
Exercised		(3,000	)		24.00		2.04		3
Forfeited		(37,600	)		29.68		8.12		24
Balance, September 30, 2020		506,400		$	26.53		5.62	$	304

Exercisable at end of period		302,220		$	25.55		4.77	$	244

Nine Months Ended September 30, 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		6.96	$	2,088
Granted		35,000			29.85		9.61		26
Exercised		(22,172	)		24.93		5.29		125
Forfeited		(26,400	)		29.53		8.20		46
Balance, September 30, 2019		524,300		$	26.63		6.38	$	2,255

Exercisable at end of period		235,680		$	25.22		5.42	$	1,307

A summary of nonvested stock option activity in the Plan during the nine months ended September 30, 2020 and 2019 follows:

Nine Months Ended September 30, 2020	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding at beginning of year		251,120		$	28.18		7.31	$	1,188
Granted		39,000			27.43		9.51		24
Vested		(53,340	)		27.79		6.55		28
Forfeited		(32,600	)		29.68		8.12		24
Balance, September 30, 2020		204,180		$	27.98		6.87	$	60

Nine Months Ended September 30, 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		35,000			29.85		9.61		26
Vested		(54,340	)		28.10		7.48		172
Forfeited		(23,600	)		33.03		9.18		46
Balance, September 30, 2019		288,620		$	27.78		7.16	$	949

Information related to stock options in the Plan is as follows for the nine months ended:

	September 30, 2020		September 30, 2019
Intrinsic value of options exercised	$	3	$	125
Cash received from options exercised		72		553
Weighted average fair value of options granted		3.86		4.99

A summary of restricted stock activity in the Plan during the nine months ended September 30, 2020 and 2019 follows:

Nine Months Ended September 30, 2020	Number of Shares			Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		31,459		$	30.29
Granted		—			—
Vested		(13,380	)		30.30
Forfeited		—			—
Balance, September 30, 2020		18,079		$	30.28

Nine Months Ended September 30, 2019	Number of Shares			Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		2,398		$	31.57
Granted		30,500			30.25
Vested		(1,439	)		31.57
Forfeited		—			—
Balance, September 30, 2019		31,459		$	29.33

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.

As of September 30, 2020, there was $1,452 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 3.17 years.

The Company granted options under the Plan during the first nine months of 2020 and 2019. Expense of $494 was recorded during both the nine months ended September 30, 2020 and 2019, which represents the fair value of shares vested during those periods.