Under Mid Penn’s amended and restated dividend reinvestment plan (“DRIP”), 330,750 shares of Mid Penn’s authorized but unissued common stock are reserved for issuance. The DRIP also allows for voluntary cash payments, within specified limits, to be used for the purchase of additional shares.

On June 25, 2014, the 2014 Restricted Stock Plan was registered under which awards shall not exceed, in the aggregate, 100,000 shares of common stock. The Plan was established for employees and directors of Mid Penn and the Bank, selected by the Compensation Committee of the Board of Directors, to advance the best interest of Mid Penn and its shareholders. The plan provides those persons who have a responsibility for its growth with additional incentives by allowing them to acquire an ownership interest in Mid Penn and thereby encouraging them to contribute to the success of the company. As of December 31, 2018, 36,859 shares have been granted under the Plan. During 2018, Mid Penn granted 12,250 restricted shares, 7,450 of which were granted to employees, while 4,800 were granted to directors. Mid Penn granted 10,440 restricted shares in 2017, 6,040 of which were granted to employees, while 4,400 were granted to directors. Throughout 2016, Mid Penn granted 7,450 restricted shares to employees. In 2018, 1,876 granted shares were forfeited to Mid Penn due to the termination of employment of three plan participants, while no shares were forfeited in 2017, and 470 shares were forfeited in 2016.

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. Restricted shares granted to employees vest in equal amounts on the anniversary of the grant date over a four year vesting period. Restricted shares granted to directors have a twelve month vesting period. The following table presents compensation expense and related tax benefits for restricted stock awards recognized on the consolidated statements of income.

(Dollars in thousands)	2018			2017			2016
Compensation expense	$	267		$	145		$	53
Tax benefit		(56	)		(49	)		(18	)
Net income effect	$	211		$	96		$	35

At December 31, 2017, there was $582,000 of unrecognized compensation cost related to all non-vested share-based compensation awards. This cost is expected to be recognized through July 2022 with a weighted average recognition period of 2.3 years. Mid Penn recognizes the impact of forfeitures as of the forfeiture date.

The following table presents information regarding the non-vested restricted stock for the year ended December 31, 2018.

	Shares			Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2018		19,499		$	22.54
Vested		(9,647	)		22.85
Forfeited		(1,876	)		24.20
Granted		12,250			33.50
Non-vested at December 31, 2018		20,226			28.76