SHARE-BASED COMPENSATION PLANS

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

The Company maintains share-based compensation plans under the shareholder-approved 2011 Plan. The purpose of the share-based compensation plans is to provide officers, employees, and non-employee members of the Board of Directors of the Company with additional incentive to further the success of the Company. At June 30, 2021, 881,920 shares of the common stock of the Company were reserved to be issued and 256,340 shares were available to be issued.

The 2011 Plan incentive awards may consist of grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units and performance shares. All employees and members of the Board of Directors of the Company are eligible to participate in the 2011 Plan. The 2011 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 and restrictions on shares. Generally, awards are nonqualified under the IRC, unless the awards are deemed to be incentive awards to employees at the Compensation Committee’s discretion.

The table below presents a summary of nonvested restricted shares activity for the six months ended June 30, 2021:


	Shares	Weighted Average Grant Date Fair Value
Nonvested shares, beginning of year	245,576	$	21.45
Granted	118,447	18.91
Forfeited	(23,316)	19.77
Vested	(78,588)	23.52
Nonvested shares, at period end	262,119	$	19.80

The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested, for the three and six months ended June 30, 2021 and 2020:


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Restricted share award expense	$	478	$	654	$	912	$	1,173
Restricted share award tax benefit	126		137		218		246
Fair value of shares vested	511		347		1,539		1,089

The unrecognized compensation expense related to the share awards totaled $2.9 million at June 30, 2021 and $2.0 million at December 31, 2020. The unrecognized compensation expense at June 30, 2021 is expected to be recognized over a weighted-average period of 1.9 years.

The Company maintains an employee stock purchase plan to provide its employees with an opportunity to purchase Company common stock. Eligible employees may purchase shares in an amount that does not exceed 10% of their annual salary, at the lower of 95% of the fair market value of the shares on the semi-annual offering date or related purchase date. The purchases occur in March and September of each year. The Company reserved 350,000 shares of its common stock to be issued under the employee stock purchase plan. At June 30, 2021, 154,751 shares were available to be issued.

The following table presents information for the employee stock purchase plan for the three and six months ended June 30, 2021 and 2020:


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Shares purchased	—		—		5,484		3,613
Weighted average price of shares purchased	$	—	$	—	$	13.44	$	16.91
Compensation expense recognized	—		—		33		3

The Company issues either new shares or treasury shares, depending on market conditions, for award through its share-based compensation plans.