Stock-Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

The Corporation has a stock incentive plan, which is administered by a committee of the Board of Directors and which permits the Corporation to provide various types of stock-based compensation to its key employees, directors, and/or consultants, including time-based and performance-based shares of restricted stock. The Corporation previously maintained the CNB Financial Corporation 2009 Stock Incentive Plan, which terminated in accordance with its terms on February 10, 2019, and currently maintains the CNB Financial Corporation 2019 Omnibus Incentive Plan (the "2019 Stock Incentive Plan"), which was approved by the Corporation’s shareholders and became effective on April 16, 2019. The 2019 Stock Incentive Plan provides for up to 507,671 shares of common stock to be awarded in the form of nonqualified options or restricted stock. For key employees, the vesting of time-based restricted stock is one-third, one-fourth, or one-fifth of the granted restricted shares per year, beginning one year after the grant date, with 100% vesting on the third, fourth or fifth anniversary of the grant date, respectively. Prior to 2018, for non-employee directors, the vesting schedule was one-third of the granted restricted shares per year, beginning one year after the grant date, with 100% vested on the third anniversary of the grant date. Beginning in 2018, stock compensation received by non-employee directors vests immediately. All stock-based compensation grants during the years ending December 31, 2020, December 31, 2019 and December 31, 2018 and outstanding at December 31, 2020, December 31, 2019 and December 31, 2018 were restricted stock.

During December 31, 2020, December 31, 2019, and December 31, 2018, the Executive Compensation and Personnel Committee of the Corporation's Board of Directors granted a total of 36,968, 40,978 and 40,108 shares, respectively, of restricted common stock to certain key employees and all independent directors of the Corporation. Compensation expense for the restricted stock awards is recognized over the requisite service period based on the fair value of the shares at the date of grant on a straight-line basis. Non-vested restricted stock awards are recorded as a reduction of additional paid-in-capital in shareholders’ equity until earned. Compensation expense resulting from time-based, performance-based and director restricted stock awards was $1,410, $1,346 and $1,545 for the years ended December 31, 2020, December 31, 2019, and December 31, 2018, respectively. The total income tax benefit related to the recognized compensation cost of vested restricted stock awards was $296, $283 and $324 for the years ended December 31, 2020, 2019 and 2018, respectively.

A summary of changes in non-vested restricted stock awards follows:


	Shares	Weighted-average Grant Date Fair Value
Non-vested at January 1, 2020	58,370	$	24.96
Granted	25,466	28.64

Vested	(27,530)	24.11
Non-vested at December 31, 2020	56,306	$	27.14

The above table excludes 11,502 shares in restricted stock awards that were granted at a weighted average fair value of $29.56 and immediately vested. As of December 31, 2020 and December 31, 2019, there was $1,055 and $1,026, respectively, of total unrecognized compensation cost related to non-vested shares granted under the restricted stock award plan. The fair value of shares vesting during December 31, 2020, December 31, 2019, and December 31, 2018 was $1,123, $1,462 and $1,535, respectively.

In addition to the time-based restricted stock disclosed above, the Corporation’s Board of Directors grants performance-based restricted stock awards ("PBRSAs") to key employees. The number of PBRSAs will depend on certain performance conditions earned over a three year period and are also subject to service-based vesting. In 2020, awards with a maximum of 18,100 shares in aggregate were granted to key employees. In 2019, awards with a maximum of 16,681 shares in aggregate were granted to key employees. In 2018, awards with a maximum of 15,657 shares in aggregate were granted to key employees.

In 2019, the 2017 PBRSAs were fully earned and in 2020, 7,109 shares were fully distributed. The fair value of the 7,109 shares distributed in 2020 was $233. Total compensation expense related to the PBRSAs and included in the above compensation expense total was $384, $221 and $314 for 2020, 2019 and 2018. Estimated unearned compensation related to PBRSAs at December 31, 2020 was $539.

The number of authorized stock-based awards still available for grant as of December 31, 2020 was 457,448.