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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2022
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 up to 400,000 shares in total 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.
Stock-based compensation expense totaled $0.9 million and $0.8 million for the years ended December 31, 2022 and 2021, respectively, which consisted of grants of restricted stock, restricted stock units and performance stock units.
The Company granted restricted stock in accordance with the Plan. The vesting period for outstanding restricted stock grants is between three and five years.
During 2020, 2021, and 2022, the Company granted restricted stock units to the Board of Directors and key employees. Service based awards vest between one and three years. Performance-based awards cliff vest in approximately three years from the date of grant, with payouts based on threshold, target or stretch average performance targets over a three-year period. There are two performance metrics: a three-year reported average return on average assets and a three-year reported average return on average equity. Both metrics are measured on a relative basis against a defined group of peer banks over the three-year period. The fair value of the restricted units is based on the Company's closing stock price on the date of grant. The recipients of the restricted stock units and the performance stock units do not have any stockholder rights, including voting, dividend, or liquidation rights, with respect to the shares underlying awarded restricted stock units until the recipient becomes the record holder of those shares. At December 31, 2022 and 2021, the fair value of restricted stock unit and performance stock unit awards vested during the year was $0.5 million and $0.3 million, respectively.
The Company has outstanding restricted stock, restricted stock units, and performance stock units in accordance with the Plan. As of December 31, 2022 and 2021, unrecognized stock compensation expense was $0.7 million and $1.1 million, respectively. The unrecognized compensation expense is expected to be recognized over a weighted average period of 1.47 years. The following tables summarize the unvested restricted stock, restricted stock unit, and performance stock unit awards outstanding at December 31, 2022 and 2021 respectively.
Restricted StockRestricted Stock UnitsPerformance Stock Units
Number of SharesWeighted Average Grant Date Fair ValueNumber of SharesWeighted Average Grant Date Fair ValueNumber of SharesWeighted Average Grant Date Fair Value
Nonvested at January 1, 20226,906 $32.81 27,652 $26.22 16,809 $23.61 
Granted1,683 38.48 12,163 38.66 3,128 40.48 
Vested(4,016)32.53 (13,293)27.81 — — 
Cancelled(37)33.52 (1,866)26.23 (3,393)24.60 
Nonvested at December 31, 20224,536$35.29 24,656$31.50 16,544$26.60 
Restricted StockRestricted Stock UnitsPerformance Stock Units
Number of SharesWeighted Average Grant Date Fair ValueNumber of SharesWeighted Average Grant Date Fair ValueNumber of SharesWeighted Average Grant Date Fair Value
Nonvested at January 1, 202114,130 $32.77 19,161 $24.06 8,482 $22.64 
Granted— — 18,198 27.13 8,327 24.60 
Vested(7,019)34.61 (9,333)23.61 — — 
Cancelled(205)32.44 (374)24.60 — — 
Nonvested at December 31, 20216,906 $32.81 27,652$26.22 16,809$23.61