Share-Based Compensation

3 Months Ended

Mar. 31, 2023

Note 8. 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 and non-employee directors 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 March 31, 2023 only restricted stock has been granted under the Incentive Stock Plan.

Restricted stock activity for the three months ended March 31, 2023 is summarized below:

			Weighted Average
			Grant Date
	Shares		Fair Value
Nonvested, January 1, 2023		46,989	$	22.49
Issued		-		-
Vested		-		-
Forfeited		-		-
Nonvested, March 31, 2023		46,989	$	22.49

The weighted average period over which nonvested awards are expected to be recognized in compensation expense is 0.95 years.

There was no restricted stock granted during the three months ended March 31, 2023 and 2022, respectively.

The remaining unrecognized compensation expense for nonvested restricted stock shares totaled $386 thousand as of March 31, 2023 and $278 thousand as of March 31, 2022.

Stock-based compensation expense was $107 thousand and $71 thousand for the three months ended March 31, 2023 and 2022, 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 was set at 5% for 2022 and for the first three months of 2023.

Total stock purchases under the ESPP amounted to 1,248 shares during the three months ended March 31, 2023. At March 31, 2023, the Company had 220,530 remaining shares reserved for issuance under the ESPP.