Note

– Stock Plans and Stock Based Compensation

Shares available for issuance under the

2018

Omnibus Equity Compensation Plan (

“2018

Plan”) total

273,329.

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

three

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

$25,000

and vest on

December 31

in the year of grant.

The fair value of the

2020

unvested shares issued was

$349,000,

$17.03

per weighted-average share. The Company recorded

$106,000

and

$82,000

of stock-based compensation to salaries and employee benefits for the

three

months ended

March 31, 2020

and

2019,

respectively. 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

$22,000

and

$17,000

was recognized related to this expense during the

three

months ended

March 31, 2020

and

2019,

respectively.

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

	Three Months Ended					Twelve Months Ended
	March 31 , 20 20					December 31, 201 9
				Weighted					Weighted
				Average					Average
				Grant					Grant
	Shares			Price		Shares			Price
Outstanding, beginning		57,774		$	13.35		116,909		$	8.69
Granted		20,507			17.03		34,501			14.81
Vested		(13,329	)		11.85		(89,388	)		7.83
Forfeited		—			—		(4,248	)		13.07
Outstanding, ending		64,952		$	14.82		57,774		$	13.35

Unrecognized stock-based compensation expense related to unvested shares for the remainder of

2020

and beyond is estimated as follows (in thousands):

April 2020 – December 2020	$	305
2021		311
2022		136
2023		14