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SHARE-BASED COMPENSATION PLANS | 9 Months Ended
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Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS The Company maintains share-based compensation plans, the purpose of which are to provide officers, employees, and non-employee members of the Board of Directors of the Company and the Bank, with additional incentive to further the success of the Company. In May 2011, the shareholders of the Company approved the 2011 Orrstown Financial Services, Inc. Incentive Stock Plan (the “Plan”). Under the Plan, 381,920 shares of the common stock of the Company were reserved to be issued. As of September 30, 2016, 132,945 shares were available to be issued under the Plan. Incentive awards under the Plan may consist of grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units and performance shares. All employees of the Company and its present or future subsidiaries, and members of the Board of Directors of the Company or any subsidiary of the Company, are eligible to participate in the Plan. The Plan allows for the Compensation Committee of the Board of Directors to determine the type of incentive to be awarded, its term, manner of exercise, vesting of awards and restrictions on shares. Generally, awards are nonqualified under the IRS code, unless the awards are deemed to be incentive awards to employees, at the Compensation Committee’s discretion. A roll forward of the Company’s nonvested restricted shares for the nine months ended September 30, 2016 is presented below:
| Shares |  | Weighted Average Grant Date Fair Value
Nonvested shares, beginning of year | 197,381 |  |  | $ | 16.17 |
Granted | 50,045 |  |  | 18.12 |
Forfeited | (3,583 | ) |  | 16.91 |
Vested | (12,500 | ) |  | 15.97 |
Nonvested shares, at period end | 231,343 |  |  | $ | 16.59 |
For the three months ended September 30, 2016 and 2015, $266,000 and $229,000 was recognized as expense on the restricted stock awards, with tax benefits recorded of $85,000 and $80,000 for the respective periods. For the nine months ended September 30, 2016 and 2015, $762,000 and $525,000 was recognized as expense on the restricted stock awards, with tax benefits recorded of $259,000 and $184,000 for the respective periods. As of September 30, 2016 and December 31, 2015, the unrecognized compensation expense related to the stock awards were $2,321,000 and $2,293,000. The unrecognized compensation expense at September 30, 2016 is expected to be recognized over a weighted-average period of 2.6 years. The intrinsic value of restricted share awards that vested during the period totaled $237,000 for the nine months ended September 30, 2016. A roll forward of the Company’s outstanding stock options for the nine months ended September 30, 2016 is presented below:
| Shares |  | Weighted Average Exercise Price
Outstanding at beginning of year | 101,460 |  |  | $ | 28.72 |
Forfeited | (2,725 | ) |  | 25.78 |
Expired | (18,265 | ) |  | 35.11 |
Options outstanding and exercisable, at period end | 80,470 |  |  | $ | 27.36 |
The exercise price of each option equals the market price of the Company’s stock on the date of grant and an option’s maximum term is ten years. All options are fully vested upon issuance. Information pertaining to options outstanding and exercisable at September 30, 2016 is as follows:
Range of Exercise Prices |  | Number Outstanding |  | Weighted Average Remaining Contractual Life (Years) |  | Weighted Average Exercise Price
$21.14 - $24.99 |  | 35,099 |  |  | 3.66 |  | $ | 21.47 |
$25.00 - $29.99 |  | 2,792 |  |  | 3.50 |  | 25.76 |
$30.00 - $34.99 |  | 35,231 |  |  | 1.18 |  | 31.34 |
$35.00 - $37.59 |  | 7,348 |  |  | 2.81 |  | 37.08 |
$21.14 - $37.59 |  | 80,470 |  |  | 2.49 |  | $ | 27.36 |
The options outstanding and exercisable had no intrinsic value at September 30, 2016 and December 31, 2015 as each exercise price exceeded the market value. The Company also maintains an employee stock purchase plan, in order to provide employees of the Company and its subsidiaries an opportunity to purchase stock of the Company. Under the employee stock purchase plan, eligible employees may purchase shares in an amount that does not exceed 10% of their annual salary, up to the IRS limit, at the lower of 95% of the fair market value of the shares on the semi-annual offering date, or related purchase date. The Company reserved 350,000 shares of its common stock, after making adjustments for stock dividends and a stock split, to be issued under the employee stock purchase plan. As of September 30, 2016, 186,004 shares were available to be issued under the employee stock purchase plan. Employees purchased 3,873 and 3,341 shares at a weighted average price of $16.68 and $15.91 for the three months ended September 30, 2016 and 2015. For the nine months ended September 30, 2016 and 2015, employees purchased 6,334 and 6,305 shares at a weighted average price of $16.64 and $15.83. Compensation expense recognized on the employee stock purchase plan totaled $14,000 and $5,000 for the three months ended September 30, 2016 and 2015. For the nine months ended September 30, 2016 and 2015, compensation expense recognized on the employee stock purchase plan totaled $17,000 and $8,000. The Company uses a combination of issuing new shares or treasury shares to meet stock compensation exercises depending on market conditions.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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