Stock Based Compensation

The Company's current stock-based compensation plan is the Union Bankshares, Inc. 2014 Equity Incentive Plan. Under the 2014 Equity Plan, 50,000 shares of the Company’s common stock are available for equity awards of incentive stock options, nonqualified stock options, restricted stock and RSUs to eligible officers and (except for awards of incentive stock options) nonemployee directors. Shares available for issuance of awards under the 2014 Equity Plan consist of unissued shares of the Company’s common stock and/or shares held in treasury. As of December 31, 2019, there were outstanding grants under the plan of RSUs and incentive stock options.

RSUs. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. For each of the awards granted in 2019, 2018, and 2017, 50% of the RSUs awarded were in the form of Time-Based RSUs, which vest over three years, approximately one-third per year on the anniversary of the earned date; and 50% of the RSUs awarded were in the form of Performance-Based RSUs, which are subject to both performance and time based vesting conditions, with vesting of awards over two years, approximately one-half per year on the anniversary of the earned date. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights.

The following table presents a summary of RSUs from the 2017, 2018, and 2019 Award Plan Summaries as of December 31, 2019:



	Number of RSUs Granted	Weighted-Average Grant Date Fair Value		Number of Unvested RSUs
2017 Award	3,225	$	52.95	433
2018 Award	3,734	47.75		2,120
2019 Award	10,143	36.26		10,143
Total	17,102			12,696

Unrecognized compensation expense related to the unvested RSUs was $492 thousand and $297 thousand, as of December 31, 2019 and 2018 respectively.

On May 15, 2019, the Company's board of directors, as a component of total director compensation, granted an aggregate of 1,185 RSUs to the Company's non-employee directors. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. The RSUs will vest on May 19, 2020, subject to continued board service through the vesting date, other than in the case of the director's death or disability. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. Unrecognized director compensation expense related to the unvested RSUs as of December 31, 2019 was $18 thousand.

Incentive stock options. The 2014 Equity Plan replaced the Company's 2008 ISO Plan. There were no options granted in 2019 or 2018 under the 2014 Equity Plan. As of December 31, 2019, 4,500 incentive stock options under the 2014 Equity Plan and 1,000 incentive stock options granted under the 2008 ISO Plan remained outstanding and exercisable.

The exercise price of outstanding options under both plans is equal to the market price of the stock at the date of grant; therefore, the intrinsic value of the options at the date of the grant is $0. All outstanding options have a one year requisite service period, vest after one year, and have a seven year contractual term. There was no compensation cost charged against income for stock options issued under the plans for 2019 or 2018.

The following summarizes the stock option activity under the 2014 Equity Plan for the year ended December 31, 2019:



	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Period End Aggregate Intrinsic Value
	(Dollars in thousands, except per share data)
Outstanding at January 1, 2019	4,500	$	24.00
Exercised	—	—
Forfeited/expired	—	—
Outstanding at December 31, 2019	4,500	$	24.00	1.96	$	55
Exercisable at December 31, 2019	4,500	$	24.00	1.96	$	55

The following summarizes the stock option activity under the 2008 ISO Plan for the year ended December 31, 2019:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Period End Aggregate Intrinsic Value
	(Dollars in thousands, except per share data)
Outstanding at January 1, 2019	3,000		$	22.00
Exercised	(2,000	)	$	22.00
Forfeited/expired	—		—
Outstanding at December 31, 2019	1,000		$	22.00	0.96	$	14
Exercisable at December 31, 2019	1,000		$	22.00	0.96	$	14

The following summarizes information regarding the proceeds received by the Company from the exercise of stock options during 2019:



	2019
	(Dollars in thousands, except per share data)
Proceeds received	$	44
Number of shares exercised	2,000
Weighted average price per share	$	22.00
Total intrinsic value of options exercised	$	30

There were no stock options exercised during 2018. As of December 31, 2019, there was no unrecognized compensation cost as all options under both plans were fully vested and exercisable.