Restricted Common Stock

6 Months Ended

Jun. 30, 2019

Common Stock Number Of Shares Par Value And Other Disclosures [Abstract]

Restricted Common Stock

(14) Restricted Common Stock

On May 6, 2014, Mid Penn shareholders approved the 2014 Restricted Stock Plan (the “Plan”), which authorizes the issuance of awards that shall not exceed, in the aggregate, 100,000 shares of common stock.  Awards under the Plan are limited to employees and directors of the Company, and the recipients are selected by the Compensation Committee of the Board of Directors, to advance the best interest of Mid Penn and its shareholders.  

Share-based compensation expense relating to restricted stock is recognized on a straight-line basis over the vesting periods of the awards and is a component of salaries and benefits expense.  As of June 30, 2019, a total of 39,205 restricted shares were granted under the Plan, of which 2,346 shares were forfeited and available for reissuance, 16,633 shares were vested, and the remaining 20,226 shares were unvested. No shares were forfeited during the six months ended June 30, 2019, while 490 shares were forfeited due to a voluntary termination of an employee during the six months ended June 30, 2018. The Plan shares granted and vested resulted in $80,000 in share-based compensation expense for the three months ended June 30, 2019, while $55,000 of share-based compensation expense was recorded for the three months ended June 30, 2018.  Compensation expense related to the Plan was $160,000 for the six months ended June 30, 2019, and $113,000 for the same period in 2018.