Stock Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Based CompensationThe Company's 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, 2020, there were outstanding grants under the plan of RSUs and incentive stock options as noted in the tables below.

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 2020 and 2019, 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 respective Award Plan Summaries as of December 31, 2020:


	Number of RSUs Granted	Weighted-Average Grant Date Fair Value		Number of Unvested RSUs
2019 Award	3,734	$	47.75	500
2020 Award	8,918	36.26		5,139
Total	12,652			5,639

Unrecognized compensation expense related to the unvested RSUs was $209 thousand and $492 thousand, as of December 31, 2020 and 2019, respectively.

On May 22, 2020, the Company's board of directors, as a component of total director compensation, granted an aggregate of 2,152 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 in May 2021, 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. Director compensation expense related to this award is estimated to be $41 thousand of which $25 thousand has been recorded for the year ended December 31, 2020.

Incentive stock options. The 2014 Equity Plan replaced the Company's 2008 ISO Plan. There were no options granted in 2020 or 2019 under the 2014 Equity Plan. As of December 31, 2020, there were 4,500 incentive stock options outstanding under the 2014 Equity Plan, all of which were exercisable.

The exercise price of outstanding options under the 2014 Equity Plan 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 in 2020 or 2019 for stock options issued under the 2014 Equity Plan or the 2008 ISO Plan.

The following summarizes the stock option activity under the 2014 Equity Plan for the year ended December 31, 2020:


	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, 2020	4,500	$	24.00

Exercised	—	—
Forfeited/expired	—	—
Outstanding at December 31, 2020	4,500	$	24.00	0.96	$	8
Exercisable at December 31, 2020	4,500	$	24.00	0.96	$	8

The following summarizes the stock option activity under the 2008 ISO Plan for the year ended December 31, 2020:


	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, 2020	1,000	$	22.00

Exercised	(1,000)	$	22.00
Forfeited/expired	—	—
Outstanding at December 31, 2020	—
Exercisable at December 31, 2020	—

The following summarizes information regarding the proceeds received by the Company from the exercise of stock options during the years ended December 31:


	2020		2019
	(Dollars in thousands, except per share data)
Proceeds received	$	22	$	44
Number of shares exercised	1,000		2,000
Weighted average price per share	$	22.00	$	22.00
Total intrinsic value of options exercised	$	14	$	30

As of December 31, 2020, there was no unrecognized compensation cost as all outstanding options were fully vested and exercisable.