Stock Compensation Plan

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Plan

Stock Compensation Plan

In April 2014, the Corporation adopted the 2014 Stock Incentive Plan (the 2014 Plan), which is shareholder approved and permits the grant of restricted stock awards and options to its directors, officers and employees for up to 176,866 shares of common stock. As of March 31, 2017, 65,783 shares of restricted stock and 88,433 stock options remain available for issuance under the plan.

In addition, the Corporation’s 2007 Stock Incentive Plan and Trust (the 2007 Plan), which is shareholder approved, permits the grant of restricted stock awards and options to its directors, officers and employees for up to 177,496 shares of common stock. As of March 31, 2017, 13 shares of restricted stock and 56,283 stock options remain available for issuance under the plan.

Incentive stock options, non-incentive or compensatory stock options and share awards may be granted under the Plans. The exercise price of each option shall at least equal the market price of a share of common stock on the date of grant and have a contractual term of ten years. Options shall vest and become exercisable at the rate, to the extent and subject to such limitations as may be specified by the Corporation. Compensation cost related to share-based payment transactions must be recognized in the financial statements with measurement based upon the fair value of the equity instruments issued.

A summary of option activity under the Plans as of March 31, 2017, and changes during the period then ended is presented below:

	Options	Weighted-Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Weighted-Average Remaining Term (in years)
Outstanding as of January 1, 2017	62,000	$	25.71	$	219	0.6
Granted	—	—		—		—
Exercised	—	—		—		—
Forfeited	—	—		—		—
Outstanding as of March 31, 2017	62,000	$	25.71	$	219	0.3
Exercisable as of March 31, 2017	62,000	$	25.71	$	219	0.3

A summary of the status of the Corporation’s nonvested restricted stock awards as of March 31, 2017, and changes during the period then ended is presented below:

	Shares	Weighted-Average Grant-date Fair Value
Nonvested at January 1, 2017	26,900	$	25.09
Granted	—	—
Vested	—	—
Forfeited	—	—
Nonvested as of March 31, 2017	26,900	$	25.09

For the three month periods ended March 31, 2017 and 2016, the Corporation recognized $55,000 and $46,000, respectively, in stock compensation expense. As of March 31, 2017, there was $425,000 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plans. That cost is expected to be recognized over a weighted-average period of 1.8 years. It is the Corporation’s policy to issue shares on the vesting date for restricted stock awards. Unvested restricted stock awards do not receive dividends declared by the Corporation.