(15) Stock Compensation Plans

The total number of shares authorized, number of shares outstanding, weighted average exercise prices, exercise prices and weighted average grant date fair value have been adjusted to give retroactive effect to stock dividends and stock splits, including the 5% stock dividend declared on January 23, 2020, payable on March 25, 2020 to shareholders of record as of February 28, 2020.

The Company has one stock option plan. Under the 2016 Stock Incentive Plan (the "Plan"), the Company may grant option grants, stock appreciation rights, restricted stock, or stock units to an employee for an amount up to 25,000 total shares in any calendar year. With respect to awards granted to non-employee directors under the Plan during the term of the Plan, the total number of shares of common stock which may be issued upon exercise or settlement of such awards is 100,000 shares and no outside director may receive option grants, stock appreciation rights, restricted stock or stock units for more than 3,000 shares total in any calendar year. There are 772,333 shares authorized under the 2016 Stock Incentive Plan. The 2016 Stock Incentive Plan will terminate on March 15, 2026.

The Compensation Committee of the Board of Directors is authorized to prescribe the terms and conditions of each option, including exercise price, vestings, or duration of the option. Generally, option grants vest at a rate of 25% per year after the first anniversary of the date of grant and restricted stock awards vest at a rate of 100% after four years. Options expire 10 years after the date of grant. Options are granted with an exercise price of the fair value of the related common stock on the date of grant.

Stock option activity for the Company’s Stock Incentive Plan during the year ended December 31, 2019 is as follows:

	Stock Options
	Number of shares			Weighted average exercise price
Balance at December 31, 2018		345,618		$	7.84
Granted		81,549			10.34
Exercised		—			—
Cancelled/Forfeited		(1,773	)		11.82

Balance at December 31, 2019		425,394		$	8.30

The following table presents information on stock options for the year ended December 31, 2019:

	Number of Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term

Stock options outstanding and expected to vest:		425,394	$	8.30	$	1,193		6.40

Stock options vested and currently exercisable:		235,825	$	6.62	$	1,039		5.00

The weighted average grant date fair value per share of options granted during the years ended December 31 was $1.73 in 2019, $2.25 in 2018, and $2.42 in 2017.

The intrinsic value of options exercised during the years ended December 31 was $0 in 2019, $81 in 2018 and $0 in 2017. The fair value of awards vested during the years ended December 31 was $141 in 2019, $114 in 2018 and $85 in 2017.

At December 31, 2019, the range of exercise prices for all outstanding options ranged from $3.11 to $11.82.

As of December 31, 2019, there was $250 of total unrecognized compensation related to non-vested stock options. This cost is expected to be recognized over a weighted average period of approximately 2.2 years.

For the years ended December 31, 2019, 2018, and 2017 there was $150, $140, and $111, respectively, of recognized compensation related to stock options.

The Company determines fair value at grant date using the Black-Scholes-Merton pricing model that takes into account the stock price at the grant date, the exercise price, the risk-free interest rate, the volatility of the underlying stock and the expected life of the option.

The weighted average assumptions used in the pricing model are noted in the following table. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is based on both the implied volatilities from the traded option on the Company’s stock and historical volatility on the Company’s stock.

The Company expenses the fair value of the option on a straight line basis over the vesting period. The Company estimates forfeitures and only recognizes expense for those shares that actually vest.

The following table shows our weighted average assumptions used in valuing stock options granted for the years ended December 31:

	2019			2018			2017
Risk-Free Interest Rate		2.47	%		2.57	%		1.89	%

Expected Dividend Yield		0.00	%		0.00	%		0.00	%

Expected Life in Years		5.00			5.00			5.00

Expected Price Volatility		11.86	%		14.44	%		22.88	%

In addition to stock options, the Company also grants restricted stock awards to directors, certain officers and employees. The restricted shares awarded become fully vested after one to four years of continued employment or service from the date of grant. Restricted shares are forfeited if officers and employees terminate prior to the lapsing of restrictions.

The following table presents information about non-vested restricted stock awards outstanding for the year ended December 31, 2019:

	Restricted Stock Awards
	Number of shares			Weighted average grant date fair value
Balance at December 31, 2018		124,311		$	8.51
Granted		46,475			10.36
Vested		(35,618	)		6.32
Cancelled/Forfeited		(3,465	)		9.86

Balance at December 31, 2019		131,703		$	9.72

The aggregate intrinsic value of restricted stock awards vested in calendar years 2019, 2018, and 2017 was $364, $323, and $200, respectively.

The weighted average fair value per share of restricted stock awards granted during the years ended December 31 was $10.36 in 2019, $11.82 in 2018, and $10.03 in 2017.

As of December 31, 2019, there was $634 of total unrecognized compensation related to non-vested restricted stock awards. This cost is expected to be recognized over a weighted average period of approximately 2.6 years.

For the year ended December 31, 2019, 2018, and 2017, there was $308, $262, and $211, respectively, of recognized compensation related to restricted stock awards.

Employee Stock Purchase Plan

The total number of shares authorized, number of shares purchased and stock price have been adjusted to give retroactive effect to stock dividends and stock splits, including the 5% stock dividend declared on January 23, 2020, payable March 25, 2020 to shareholders of record as of February 28, 2020.

The Company has an Employee Stock Purchase Plan ("ESPP"). Under the 2016 ESPP, the Company is authorized to issue to an eligible employee shares of common stock. There are 310,041 shares authorized under the 2016 ESPP, which include authorized but unissued shares under the 2006 Amended ESPP. The 2016 ESPP will expire on March 16, 2026.

The ESPP is implemented by participation periods of not more than twenty-seven months each. The Board of Directors determines the commencement date and duration of each participation period. An eligible employee is one who has been continually employed for at least ninety (90) days prior to commencement of a participation period. Under the terms of the Plan, employees can choose to have up to 10 percent of their compensation withheld to purchase the Company’s common stock each participation period. The purchase price of the stock is 85 percent of the lower of the fair value on the last trading day before the Date of Participation or the fair value on the last trading day during the participation period. Approximately 39 percent of eligible employees are participating in the Plan in the current participation period, which began November 24, 2019 and will end November 23, 2020.

Under the Plan, at the annual stock purchase date of November 22, 2019, there were $96 in contributions, and 10,365 shares were purchased at a price of $9.23. For the year ended December 31, 2019, 2018, and 2017, there was $17, $22, and $56, respectively, of recognized compensation related to ESPP issuances. Compensation cost is reported in salaries and employee benefits expense in the consolidated statements of income.