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 three months of 2020, 47,567 shares were granted to employees under the plan, compared to no shares being granted under the plan in the first three months of 2019. 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 three months of 2020 and 2019, compensation expense of $129,000 and $54,000, respectively, was recorded in the Consolidated Statements of Income. As of March 31, 2020, there was $827,000 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 15.2 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 return on equity ranked versus a peer group.

The following is the activity under the Omnibus Equity Plan during the three months ended March 31, 2020:

	Shares			Weighted Average Grant Date Fair Value
Nonvested at January 1, 2020		26,025		$	21.78
Granted		47,567			15.82
Vested		(3,798	)		18.25
Forfeited		—			—
Nonvested at March 31, 2020		69,794		$	17.91

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 2,684 Board approved shares granted in the first three months of 2020, and there were no Board approved shares granted under the plan in the first three months of 2019. In the first three months of 2020, there was $43,000 expense recorded in the Consolidated Statements of Income, and there was no expense recorded in the first three months of 2019.