Equity Compensation

3 Months Ended

Mar. 31, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Compensation

14.) Equity Compensation:

During 2015, the Company, created the 2015 Omnibus Equity Plan and The Director Equity Plan.

The Omnibus Equity Plan permits the award of up to 340,000 shares to the Company’s employees to promote the long-term financial success of the Company, increasing stockholder value by providing employees the opportunity to acquire an ownership interest in the Company and enabling the Company and its related entities to attract and retain the services of those upon whom the successful conduct of business depends. There were 12,976 restricted board approved shares granted under the plan in March 2017 and 13,683 restricted board approved shares granted under the plan in April 2016. The Company is expensing the grant date fair value of all share-based compensation over the requisite vesting periods on a prorated straight-line basis.  In the first quarter of 2017, $18,000 was recorded in the Consolidated Statements of Income. There was none recorded in the first quarter of 2016. As of March 31, 2017, there was $380,000 of total unrecognized compensation expense related to the non-vested shares granted under the Plan and at December 31, 2016 there was $161,000 of total unrecognized compensation expense related to the non-vested shares granted under the Plan. Shares awarded under this plan vest in equal thirds on the first three anniversaries of the award date if the employee remains employed with Cortland Bancorp. The remaining expense is expected to be recognized over the next 36 months.

Granted shares are awarded upon meeting achievement of performance objectives derived from one or more of the performance criteria. The main metrics used include earnings per share and total shareholder return.

The Director Equity Plan permits the award of up to 113,000 shares to nonemployee directors to promote the long-term financial success of the Company, increasing shareholder value by enabling the Company and its related entities to attract and retain the services of those directors upon whom the successful conduct of business depends.  There were 1,656 board approved shares granted under the plan in March 2017 with immediate vesting, and 1,789 board approved shares granted under the plan in April 2016 with immediate vesting.  In the first quarter of 2017, $30,000 was recorded in the Consolidated Statements of Income. There was none recorded in the first quarter of 2016.

The following is the activity under the two plans during the three months ended March 31, 2017:

	Restricted Stock Units
	Units		Price at Grant Date
Nonvested at January 1, 2017		13,683	$	15.25
Granted		14,632		18.25
Vested		1,656		18.25
Forfeited		—		—
Nonvested at March 31, 2017		26,659	$	16.71