SHARE-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

The Company maintains share-based compensation plans under the shareholder-approved 2011 Plan. The purpose of the share-based compensation plans is to provide officers, employees, and non-employee members of the Board of Directors of the Company with additional incentive to further the success of the Company. At December 31, 2019, 881,920 shares of the common stock of the Company were reserved to be issued and 455,028 shares were available to be issued.

The 2011 Plan incentive awards may consist of grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units and performance shares. All employees and members of the Board of Directors of the Company and its subsidiaries, are eligible to participate in the 2011 Plan. The 2011 Plan allows for the Compensation Committee of the Board of Directors to determine the type of incentive to be awarded, its term, manner of exercise, vesting and restrictions on shares. Generally, awards are nonqualified under the IRC, unless the awards are deemed to be incentive awards to employees at the Compensation Committee’s discretion.

The following table presents a summary of nonvested restricted shares activity for 2019.


	Shares	Weighted Average Grant Date Fair Value

Nonvested shares, beginning of year	275,412	$	20.33
Granted	114,893	20.24
Forfeited	(36,069)	19.42
Vested	(125,478)	17.65
Nonvested shares, end of year	228,758	$	21.90

The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested at December 31, 2019, 2018 and 2017.


	2019		2018		2017

Restricted share award expense	$	1,578	$	1,479	$	1,369
Restricted share award tax benefit	451		374		465
Fair value of shares vested	2,744		1,074		303

At December 31, 2019 and 2018, unrecognized compensation expense related to the share awards totaled $2.2 million and $2.1 million, respectively. The unrecognized compensation expense at December 31, 2019 is expected to be recognized over a weighted-average period of 1.9 years.

The following table presents a summary of outstanding stock options activity for 2019.


	Shares	Weighted Average Exercise Price

Outstanding, beginning of year	40,984	$	24.34

Expired	(10,425)	32.47

Options outstanding and exercisable, end of year	30,559	$	21.56

The exercise price of each option equals the market price of the Company’s stock on the grant date. An option’s maximum term is ten years. All options are fully vested upon issuance. The following table presents information pertaining to options outstanding and exercisable at December 31, 2019.


Range of Exercise Prices	Number Outstanding and Exercisable	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price






$21.14 - $25.76	30,559	0.53	$	21.56

Outstanding and exercisable options had an intrinsic value of $41 thousand at December 31, 2019 and $0 at December 31, 2018.

The Company maintains an employee stock purchase plan to provide employees of the Company an opportunity to purchase Company common stock. Eligible employees may purchase shares in an amount that does not exceed 10% of their annual salary at the lower of 95% of the fair market value of the shares on the semi-annual offering date, or related purchase date. The Company reserved 350,000 shares of its common stock to be issued under the employee stock purchase plan. At December 31, 2019, 168,066 shares were available to be issued.

The following table presents information for the employee stock purchase plan for years ended December 31, 2019, 2018 and 2017.


	2019		2018		2017

Shares purchased	5,399		5,907		6,632
Weighted average price of shares purchased	$	20.69	$	23.04	$	20.57
Compensation expense recognized	8		14		17
Tax benefits	2		3		6

The Company issues new shares or treasury shares, depending on market conditions, in its share-based compensation plans.