Share-Based Compensation

12 Months Ended

Dec. 31, 2021

NOTE 11, Share-Based Compensation

The Company has adopted an employee stock purchase plan and offers share-based compensation through its equity compensation plan. Share-based compensation arrangements may include stock options, restricted and unrestricted stock awards, restricted stock units, performance units 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.

The 2016 Incentive Stock Plan (the 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. As of December 31, 2021, only restricted stock had been granted under the Incentive Stock Plan.

Restricted stock activity for the year ended December 31, 2021 is summarized below.

				Weighted Average
				Grant Date
	Shares			Fair Value
Nonvested, January 1, 2021		29,576		$	18.46
Issued		18,048			22.35
Vested		(8,521	)		17.50
Forfeited		(668	)		18.89
Nonvested, December 31, 2021		38,435		$	20.49

The weighted average period over which nonvested awards are expected to be recognized in compensation expense is 1.51 years.

The fair value of restricted stock granted during the year ended December 31, 2021 and 2020 was $403 thousand and $298 thousand, respectively.

The remaining unrecognized compensation expense for nonvested restricted stock shares totaled $351 thousand as of December 31, 2021 and $254 thousand as of December 31, 2020.

Stock-based compensation expense was $294 thousand and $261 thousand for the years ended December 31, 2021 and 2020, respectively.

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 for 2021 and 2020 was set at 5%.

Total stock purchases under the ESPP amounted to 4,908 shares during 2021 and 5,819 shares during 2020. At December 31, 2021, the Company had 227,543 remaining shares reserved for issuance under the ESPP.