SHARE-BASED COMPENSATION PLANS

6 Months Ended

Jun. 30, 2022

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 the Company's 2022 Annual Meeting of Shareholders held on April 26, 2022, the Company's shareholders approved an amendment to the 2011 Plan increasing the number of shares available for issuance under the 2011 Plan by 400,000. At June 30, 2022, 1,281,920 shares of the common stock of the Company were reserved, of which 537,611 shares are 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 the six months ended June 30, 2022:


	Shares	Weighted Average Grant Date Fair Value
Nonvested shares, beginning of year	274,697	$	20.05
Granted	137,449	24.89
Forfeited	(26,290)	21.40
Vested	(76,931)	19.67
Nonvested shares, at period end	308,925	$	22.18

The following table presents restricted share compensation expense, with tax benefit information, and fair value of shares vested, for the three and six months ended June 30, 2022 and 2021:


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Restricted share award expense	$	529	$	478	$	859	$	912
Restricted share award tax benefit	111		126		180		218
Fair value of shares vested	540		511		1,864		1,539

The unrecognized compensation expense related to the share awards totaled $4.1 million at June 30, 2022 and $2.3 million at December 31, 2021. The unrecognized compensation expense at June 30, 2022 is expected to be recognized over a weighted-average period of 2.0 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, 2022, 147,527 shares were available to be issued under the employee stock purchase plan.

The following table presents information for the employee stock purchase plan for the three and six months ended June 30, 2022 and 2021:


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Shares purchased	—		—		3,953		5,484
Weighted average price of shares purchased	$	—	$	—	$	22.46	$	13.44
Compensation expense recognized	—		—		8		33

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