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.

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

	2020			2019			2018
Risk-free interest rate		0.79	%		2.11	%		2.87	%
Expected term (in years)		6.50			6.50			6.50
Expected stock price volatility		22.26	%		19.89	%		20.10	%
Dividend yield		2.56	%		2.36	%		1.76	%

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		74,000			28.67		9.57		145
Exercised		(26,600	)		24.00		1.79		158
Forfeited		(49,200	)		29.71		7.58		84
Balance, December 31, 2020		506,200		$	26.81		5.82	$	1,805

Exercisable at end of period		291,520		$	25.63		4.74	$	1,339

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

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

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		74,000			28.67		9.57		145
Vested		(71,040	)		27.26		6.00		230
Forfeited		(39,400	)		29.71		7.58		84
Balance, December 31, 2020		214,680		$	28.42		7.28	$	466

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

	2020		2019		2018
Intrinsic value of options exercised	$	158	$	314	$	102
Cash received from options exercised		638		925		327
Weighted average fair value of options granted		4.46		4.97		6.69

A summary of restricted stock activity in the Plan during the years ended December 31, 2020 and 2019 follows:

2020	Number of Shares			Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		31,459		$	30.29
Granted		19,500			29.32
Vested		(15,179	)		30.33
Forfeited		(480	)		31.57
Balance, December 31, 2020		35,300		$	29.72

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, December 31, 2019		31,459		$	30.29

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 December 31, 2020, there was $1,980 of total unrecognized compensation expense related to unvested stock options and restricted stock granted under the Plan. The expense is expected to be recognized over a weighted-average period of 3.34 years.

The Company granted options and restricted stock under the Plan in 2020, 2019 and 2018. Expense of $749, $663 and $592 was recorded during the years ended December 31, 2020, 2019 and 2018, respectively, which represents the fair value of options and restricted shares vested during those years.