Share-Based Compensation

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The Company’s share-based incentive plans (“Stock Plans”) authorize the issuance of an aggregate of 485,873 shares of the Company’s common stock (as adjusted for stock dividends) pursuant to awards that may be granted in the form of stock options to purchase common stock (“Options”) and awards of shares of common stock (“Stock Awards”).

As of June 30, 2018, there were 80,086 shares of common stock available for future grants under the Stock Plans.

The following table summarizes stock option activity during the six months ended June 30, 2018:



(Dollars in thousands, except share amounts)	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2018	142,005		$	7.86
Granted	10,450		18.30
Exercised	(9,307	)	7.01
Outstanding at June 30, 2018	143,148		$	8.68	4.6	$	2,015

Exercisable at June 30, 2018	124,132		$	7.48	3.8	$	1,895

The fair value of each option and the significant weighted average assumptions used to calculate the fair value of the options granted for the six months ended June 30, 2018 were as follows:



Fair value of options granted	$	5.93
Risk-free rate of return	2.46		%
Expected option life in years	7
Expected volatility	31.35		%
Expected dividends	1.18		%

Share-based compensation expense related to options was $34,000 and $28,000 for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, there was approximately $93,000 of unrecognized compensation cost related to non-vested stock options.

The following table summarizes the activity in non-vested restricted shares for the six months ended June 30, 2018:



(Dollars in thousands, except share amounts)	Number of Shares		Average Grant-Date Fair Value
Outstanding at January 1, 2018	150,745		$	11.87
Granted	37,200		19.11
Vested	(39,190	)	13.59
Non-vested at June 30, 2018	148,755		$	13.23

Share-based compensation expense related to stock grants was $472,000 and $456,000 for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, there was approximately $1.8 million of unrecognized compensation cost related to non-vested stock grants.