STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

The Company has stock-based incentive arrangements to attract and retain key personnel. In May 2015, the 2015 Equity Compensation Plan (the “Plan”) was approved by shareholders, which authorizes the issuance of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation expense for service-based awards is recognized over the vesting period. Performance-based awards are recognized based on a vesting schedule and the probability of achieving goals specified at the time of the grant. The Plan replaced the 2005 Equity Compensation Plan.

Stock-based compensation expense totaled $99,000 and $262,000 for the three and nine months ended September 30, 2020 and $63,000 and $232,000, respectively, for the three and nine months ended September 30, 2019. Stock-based compensation expense consisted of the vesting of grants of restricted stock. The Company has not granted any stock options since 2007 and all outstanding options expired on July 17, 2017.

The Company granted restricted stock in accordance with the Plan. The vesting period for outstanding restricted stock grants is between three and five years. In August 2020, the Company granted a total of 21,393 restricted stock units to the Board of Directors and key employees. Awards of 12,911 and 8,482 are service based and performance based, respectively, and vest between one and three years. The fair value of the restricted units is based on the Company's closing stock price on the date of grant.

As of September 30, 2020, and December 31, 2019, unrecognized stock compensation expense for both the restricted stock and the restricted stock units was $810,000 and $304,000, respectively. The following tables summarize the nonvested restricted stock and restricted stock unit awards outstanding at September 30, 2020 and December 31, 2019, respectively.

	Restricted Stock			Restricted Stock Units
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2020	14,440	$	25.79	—	$	—
Granted	9,065	33.42		21,393	22.64
Vested	(5,767)	34.08		—	—
Cancelled	(442)	33.81		—	—
Nonvested at September 30, 2020	17,296	$	32.98	21,393	$	22.64

	Restricted Stock			Restricted Stock Units
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value
Nonvested at January 1, 2019	25,473	$	28.76	$	—	$	—
Granted	6,524	31.82		—		—
Vested	(17,557)	25.83		—		—
Nonvested at December 31, 2019	14,440	$	25.79	$	—	$	—