Share-Based Compensation

3 Months Ended

Mar. 31, 2017

Share-Based Compensation [Abstract]

Share-Based Compensation

Note 5. Share-Based Compensation

The Company has adopted an employee stock purchase plan and offers share-based compensation through its equity compensation plans. Share-based compensation arrangements include stock options, restricted and unrestricted stock awards, restricted stock units, performance-based awards and stock appreciation rights. Accounting standards require all share-based payments to employees to be valued using a fair value method on the date of grant and to be expensed based on that fair value over the applicable vesting period. The Company accounts for forfeitures during the vesting period as they occur.

There were no equity awards granted in the first three months of 2017.

The Company's 1998 Stock Option Plan, pursuant to which stock options could be granted to key employees and non-employee directors, expired on March 9, 2008.  Stock options that were outstanding on March 9, 2008 remained outstanding in accordance with their terms, but no new awards could be granted under the plan after March 9, 2008. Options to purchase 42,599 shares of common stock were outstanding under the Company's 1998 Stock Option Plan at March 31, 2017. The exercise price of each option equals the market price of the Company's common stock on the date of the grant and each option's maximum term is ten years.

Stock option activity for the three months ended March 31, 2017 is summarized below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Options outstanding, January 1, 2017		60,605		$	20.05
Granted		0			0
Exercised		(18,006	)		20.05
Canceled or expired		0			0
Options outstanding, March 31, 2017		42,599		$	20.05		0.54		$	430
Options exercisable, March 31, 2017		42,599		$	20.05		0.54		$	430

The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current fair value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on March 31, 2017. This amount changes based on changes in the fair value of the Company's common stock.

During the three months ended March 31, 2017, the Company received $361 thousand from the exercise of stock options. No options were exercised during the three months ended March 31, 2016.

No options were granted during the three months ended March 31, 2017 or the three months ended March 31, 2016. As of March 31, 2017, all outstanding stock options were fully vested and there was no unrecognized stock-based compensation expense.

The Old Point Financial Corporation 2016 Incentive Stock Plan permits the issuance of up to 300,000 shares of common stock for awards to key employees and non-employee directors of the Company and its subsidiaries in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, stock awards and performance units. The Company did not award any equity compensation under the Incentive Stock Plan during 2016. Also, no equity compensation awards were granted during the three months ended March 31, 2017, although the Company anticipates beginning to award equity compensation to key employees and non-employee directors in 2017. Accordingly, as of March 31, 2017, there were no awards outstanding under the Incentive Stock Plan.

EMPLOYEE STOCK PURCHASE PLAN

Under the Company's Employee Stock Purchase Plan (ESPP), substantially all employees of the Company and its subsidiaries can authorize a specific payroll deduction from their base compensation for the periodic purchase of the Company's common stock. Shares of stock are issued quarterly at a discount to the market price of the Company's stock on the day of purchase, which can range from 0-15% and was set at 5% for 2016 and for the first three months of 2017.

Total stock purchases under the ESPP amounted to 999 shares during 2016. 773 shares were purchased under the ESPP during the three months ended March 31, 2017. At March 31, 2017, the Company had 248,228 remaining shares reserved for issuance under this plan.