SHARE-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 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 December 31, 2021, 881,920 shares of the common stock of the Company were reserved to be issued and 248,770 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 and its subsidiaries, 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 following table presents a summary of nonvested restricted shares activity for 2021.


	Shares	Weighted Average Grant Date Fair Value

Nonvested shares, beginning of year	245,576	$	21.45
Granted	137,347	19.53
Forfeited	(29,638)	19.68
Vested	(78,588)	23.52
Nonvested shares, end of year	274,697	$	20.05

The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested at December 31, 2021, 2020 and 2019.


	2021		2020		2019

Restricted share award expense	$	1,901	$	1,710	$	1,578
Restricted share award federal tax benefit	334		359		451
Fair value of shares vested	1,539		1,384		2,744

At December 31, 2021, 2020 and 2019, unrecognized compensation expense related to the share awards totaled $2.3 million, $2.0 million, and $2.2 million, respectively. The unrecognized compensation expense at December 31, 2021 is expected to be recognized over a weighted-average period of 1.8 years.

There were no outstanding and exercisable stock options at December 31, 2021 and 2020.

The Company maintains an employee stock purchase plan to provide employees of the Company 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 Company reserved 350,000 shares of its common stock to be issued under the employee stock purchase plan. At December 31, 2021, 151,480 shares were available to be issued.

The following table presents information for the employee stock purchase plan for years ended December 31, 2021, 2020 and 2019.


	2021		2020		2019

Shares purchased	8,755		7,831		5,399
Weighted average price of shares purchased	$	15.58	$	14.85	$	20.69
Compensation expense recognized	$	48	$	6	$	8

The Company issues new shares or treasury shares, depending on market conditions, in its share-based compensation plans.