Stock-Based Compensation

9 Months Ended

Sep. 30, 2018

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

Stock-Based Compensation

Note 11: Stock-Based Compensation

On January 5, 2018, a total of 6,400 restricted stock awards were granted to four executive officers of the Company. On July 2, 2018, a total of 2,000 restricted stock awards were granted to one executive officer of the Company. The awards will vest ratably over five years (20% per year for each year of the participant’s service with the Company).

The Company has a stock-based compensation plan which allows the Company to issue up to 194,168 stock options. On January 5, 2018, the Board of Directors granted a combined total of 15,000 options to three executive officers to buy stock under the plan at an exercise price of $17.52, the fair value of the stock as of January 5, 2018. On July 2, 2018, the Board of Directors granted a total of 5,000 options to one executive officer to buy stock under the plan at an exercise price of $17.75, the fair value of the stock as of July 2, 2018. These options have a 10-year term and are vested over a five year period (20% per year for each year of the participant’s service with the Company).

A summary of the Company’s stock option activity and related information for its option plans for the three and nine months ended September 30, 2018 is as follows:

	For the three months ended  September 30, 2018				For the nine months ended  September 30, 2018
	Options		Weighted Average  Exercise Price Per  Share		Options		Weighted Average  Exercise Price Per  Share
Outstanding at beginning of period		167,080	$	16.79		152,080	$	16.72
Grants		5,000		17.75		20,000		17.58
Exercised		-		-		-		-
Outstanding at quarter end		172,080	$	16.82		172,080	$	16.82
Exercisable at quarter end		-	$	-		-	$	-

The Company did not grant any stock options for the three and nine months ended September 30, 2017.

The grants to senior management and directors vest over a five year period in equal annual installments, with the first installment vesting on the first anniversary date of the grant and succeeding installments on each anniversary thereafter, through 2023.

The compensation expense of the awards is based on the fair value of the instruments on the date of grant. The Company recorded compensation expense in the amount of $79,000 for the three months ended September 30, 2018 and $231,000 for the nine months ended September 30, 2018. The Company did not record any compensation expense for the three and nine months ended September 30, 2017.