Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

Note 12. Stock-Based Compensation

The Company has granted restricted stock awards ("RSA") to employees and directors under the Blue Ridge Bankshares, Inc. Equity Incentive Plan. RSAs are considered fixed awards as the number of shares and fair value is known at the date of grant, and the fair value of the award at the grant date is amortized over the requisite service period, which is generally three years. Compensation expense recognized in the consolidated statements of operations related to RSAs, net of forfeitures, for the years ended December 31, 2021 and 2020 was $1.3 million and $567 thousand, respectively. Unrecognized compensation expense related to the restricted stock awards as of December 31, 2021 totaled $2.5 million.

The following table presents RSA activity as of and for the periods stated.

	Shares			Weighted Average Fair Value per RSA
RSA unvested and outstanding, January 1, 2020		94,762		$	12.17
Granted		120,429			10.41
Vested		(36,216	)		12.14
Forfeited		(30,375	)		12.43
RSA unvested and outstanding, December 31, 2020		148,600		$	10.70
Granted		174,634			17.35
Vested		(85,037	)		12.28
Forfeited		(20,013	)		13.45
RSA unvested and outstanding, December 31, 2021		218,184		$	15.15

The Company converted fully vested options to purchase 198,362 shares of Bay Banks common stock into options to purchase 99,176 shares (148,758 on a post Stock Split basis) of the Company’s common stock pursuant to the Bay Banks Merger. The estimated fair value of the converted stock options as of the effective date of the merger was $472 thousand and included in the Bay Banks Merger consideration. The estimated fair value was determined using the Black-Scholes Model, which requires the use of assumptions including the risk-free interest rate, expected term, expected volatility (of the underlying stock), and expected dividend yield.

The following table presents the ranges and weighted averages of assumptions used to determine the estimated fair value of the converted stock options in the Bay Banks Merger.

	As of January 31, 2021
	Range	Weighted Average
Risk free interest rate (U.S. Treasury)	0.06% - 0.45%	0.32%
Expected term (years)	0.14 - 5.00	3.89
Expected volatility	21.2% - 38.2%	32.8%
Expected dividend yield	2.85%	2.85%

The following table presents stock option activity for the periods presented.

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (1)
Options outstanding and exercisable, January 1, 2021		—			—		—		—
Assumed in Bay Banks Merger		148,758		$	9.89		5.47
Granted		—			—
Forfeited		(808	)		13.80
Exercised		(89,786	)		9.99
Expired		(557	)		6.47
Options outstanding and exercisable, December 31, 2021		57,607		$	11.75		6.18	$	354,269

(1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options as of the respective years ended. This amount changes based on the market value of the Company’s common stock.