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 shareholder 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. In the first nine months of 2019, 30,156 shares were granted to employees under the plan, compared to 12,593 shares being granted under the plan in the first nine months of 2018. 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 nine months of 2019 and 2018, compensation expense of $627,000 and $144,000, respectively, was recorded in the Consolidated Statements of Income. In the third quarters of 2019 and 2018, compensation expense of $126,000 and $58,000, respectively, was recorded in the Consolidated Statements of Income. As of September 30, 2019, there was $365,000 of total unrecognized compensation expense related to the non-vested shares granted under the Plan. Shares awarded under this plan can vest immediately and/or on the anniversary of the award date from one to three years out if the employee remains employed with Cortland Bancorp. The remaining cost is expected to be recognized over a weighted average period of 8.9 months.

Granted shares are awarded upon a combination of service and achievement of performance objectives derived from one or more of the performance criteria. The main metrics used for the periods presented were three-year earnings per share growth and three-year total shareholder return ranked versus a peer group.

The following is the activity under the Omnibus Equity Plan during the nine months ended September 30, 2019:

	Shares			Weighted Average Grant Date Fair Value
Nonvested at January 1, 2019		23,591		$	19.67
Granted		30,156			22.58
Vested		(26,821	)		20.81
Forfeited		—			—
Nonvested at September 30, 2019		26,926		$	21.79

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 1,525 Board approved shares granted in the first nine months of 2019, and there were 989 Board approved shares granted under the plan in the first nine months of 2018. In the first nine months of 2019, there was $34,000 expense recorded in the Consolidated Statements of Income, and there was $22,000 expense recorded in the first nine months of 2018. There was no expense recorded in the third quarter of 2019 and 2018.