Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement, Noncash Expense [Abstract]

NOTE 10. Stock-Based Compensation

Restricted Stock provides grantees with rights to shares of common stock upon completion of a service period or achievement of Company performance measures. During the restriction period, all shares are considered outstanding and dividends are paid to the grantee. Outside directors are periodically granted restricted shares which vest over a period of less than nine months. During 2022, executive officers were granted restricted shares which vest over a three year service period and restricted shares which vest based on meeting performance measures over a one year period. Beginning in 2018, certain non-executive officers also were granted restricted shares which vest over a three year service period. Vesting schedules were unchanged from the two prior years.

The following table presents the activity for Restricted Stock for the years ended December 31, 2022 and 2021:


	Twelve Months Ended
	December 31,
	2022					2021
	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Nonvested, beginning of period		31,738		$	30.70		20,928		$	29.98
Granted		31,648			35.19		32,496			31.16
Vested		(23,079	)		32.11		(21,261	)		30.70
Forfeited		(1,527	)		32.13		(425	)		31.05
Nonvested, end of period		38,780		$	33.47		31,738		$	30.70

The Company recognizes compensation expense over the vesting period based on the fair value of the Company's stock on the grant date. Compensation expense was $1.0 million and $850 thousand during December 31, 2022 and 2021, respectively. The total grant date fair value of Restricted Stock which vested was $741 thousand and $653 thousand for the years ended December 31, 2022 and 2021, respectively. The total vest date fair value of Restricted Stock which vested was $819 thousand and $690 thousand for the years ended December 31, 2022 and 2021, respectively. Unrecognized compensation cost related to unvested Restricted Stock was $377 thousand at December 31, 2022. This amount is expected to be recognized over a weighted average period of two years. The Company's policy is to recognize forfeitures as they occur.