Preferred and Common Stock

12 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Common Stock

Common Stock

In 2016, the Company reserved 250,000 shares of its common stock to be made available to directors and employees who elect to participate in the stock purchase or savings and investment plans. As of December 31, 2019, 52,819 shares had been issued pursuant to these plans, leaving 197,181 shares available for future use. The issuance price is based on the market price of the stock at issuance date. Prior to 2016, the Company had reserved 700,000 shares of its common stock to be made available to directors and employees who elected to participate in the stock purchase or savings investment plans. Sales of stock to directors and employees amounted to 13,408 shares in 2019, 12,138 shares in 2018, and 12,762 shares in 2017.

In 2001, the Company established a dividend reinvestment plan to allow shareholders to use their cash dividends for the automatic purchase of shares in the Company. The plan was amended in 2018 to reflect changes in its administration. When the plan was established, 600,000 shares were registered with the Securities and Exchange Commission, and as of December 31, 2019, 278,526 shares have been issued, leaving 321,474 shares available for future issuance. Participation in this plan is optional and at the individual discretion of each shareholder. Shares are purchased for the plan from the Company at a price per share equal to the average of the daily bid and asked prices reported on the NASDAQ System for the five trading days immediately preceding, but not including, the dividend payment date. Sales of stock under the dividend reinvestment plan amounted to 11,242 shares in 2019, 9,524 shares in 2018, and 9,922 shares in 2017.

Proceeds from issuances of common stock under these plans totaled $653,000, $619,000 and $632,000 for the years ended December 31, 2019, 2018 and 2017, respectively.