OTE

– STOCK PLANS AND STOCK BASED COMPENSATION

Shares available for issuance under the

2018

Omnibus Equity Compensation Plan (

“2018

Plan”) total

292,497.

Shares issued to employees under the plan vest annually on the anniversary date of the grant over

three

years. Shares issued annually to each non-employee director have a fair market value of

$25,000

and vest on

December 31

in the year of grant.

The fair value of the

2019

unvested shares issued was

$511,000,

$14.81

per weighted-average share. The Company recorded

$535,000,

$524,000,

and

$400,000

of stock-based compensation during

2019,

2018,

and

2017,

respectively, to salaries and employee benefits. Management expects substantially all of the unvested shares outstanding at the end of the period to vest according to the vesting schedule. A deferred tax benefit of

$112,000,

$110,000,

and

$140,000

was recognized related to this expense in

2019,

2018,

and

2017,

respectively.

The following table summarizes unvested share activity as of and for the periods indicated for the Stock Incentive Plan:

	Twelve Months Ended					Twelve Months Ended
	December 31 , 201 9					December 31, 201 8
				Weighted					Weighted
				Average					Average
				Grant					Grant
	Shares			Price		Shares			Price
Outstanding, beginning		116,909		$	8.69		142,334		$	5.67
Granted		34,501			14.81		52,856			13.94
Vested		(89,388	)		7.83		(78,281	)		6.75
Forfeited		(4,248	)		13.07		—			—
Outstanding, ending		57,774		$	13.35		116,909		$	8.69

Unrecognized stock based compensation expense related to unvested shares for

2020

and beyond is estimated as follows (in thousands):

2020	$	309
2021		194
2022		20
2023 & thereafter		—