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Employee Benefit Plans | 3 Months Ended
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Mar. 31, 2020
Defined Benefit Plan [Abstract] |
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan: The Company provides a deferred salary reduction plan (“Plan”) under Section 401(k) of the Internal Revenue Code covering substantially all employees. After one year of service the Company matches 100% of employee contributions up to 3% of compensation and 50% of employee contributions on the next 2% of compensation. The Company's contribution to the Plan for the three month period ending March 31, 2020, and 2019, respectively, was $251 thousand and $198 thousand. Equity Incentive Plans: The Compensation Committee of the Company’s Board of Directors may grant or award eligible participants stock options, restricted stock, restricted stock units, stock appreciation rights, and other stock-based awards or any combination of awards (collectively referred to herein as "Rights"). At March 31, 2020, the Company had one active equity incentive plan administered by the Board of Directors, the 2015 Stock Incentive Plan. The Company had 32,034 Rights issued and 1,883,107 Rights available for grants or awards under this plan. In addition to the 2015 Stock Incentive Plan, the Company has 38,250 Rights issued from the Cornerstone Bancshares, Inc. 2002 Long Term Incentive Plan, 49,250 Rights issued from the Cornerstone Non-Qualified Plan Options, and 2,266 Rights issued from the Capstone Stock Option Plan. These plans do not have any Rights available for future grants or awards. Stock Options: A summary of the status of stock option plans is presented in the following table:
|  | Number |  | Weighted Average Exercisable Price
Outstanding at December 31, 2019 |  | 136,658 |  |  | $ | 10.29 |
Granted |  | — |  |  | — |
Exercised |  | (14,858) |  |  | 11.62 |
Forfeited |  | — |  |  | — |
Outstanding at March 31, 2020 |  | 121,800 |  |  | $ | 10.13 |
Information pertaining to stock options outstanding at March 31, 2020, is as follows:
|  | Options Outstanding |  |  |  |  |  | Options Exercisable |  |
|  |  |  | Weighted- Average Remaining |  | Weighted- Average |  |  |  | Weighted- Average
Exercise |  | Number |  | Contractual |  | Exercise |  | Number |  | Exercise
Prices |  | Outstanding |  | Life |  | Price |  | Exercisable |  | Price
$ | 6.60 |  |  | 25,000 |  |  | 1.6 years |  | $ | 6.60 |  |  | 25,000 |  |  | $ | 6.60 |
6.80 |  |  | 13,250 |  |  | 0.9 years |  | 6.80 |  |  | 13,250 |  |  | 6.80 |
9.48 |  |  | 21,000 |  |  | 2.7 years |  | 9.48 |  |  | 21,000 |  |  | 9.48 |
9.60 |  |  | 28,250 |  |  | 3.2 years |  | 9.60 |  |  | 28,250 |  |  | 9.60 |
11.76 |  |  | 2,266 |  |  | 2.2 years |  | 11.76 |  |  | 2,266 |  |  | 11.76 |
$ | 15.05 |  |  | 32,034 |  |  | 5.0 years |  | 15.05 |  |  | 32,034 |  |  | 15.05 |
Outstanding, end of period |  | 121,800 |  |  | 3.0 years |  | $ | 10.13 |  |  | 121,800 |  |  | $ | 10.13 |
The Company did not recognize any stock option-based compensation expense during the three months ended March 31, 2020, as all stock options issued are fully vested. During the three month period ended March 31, 2019, stock option-based compensation expense was $31 thousand. The intrinsic value of options exercised during the periods ended March 31, 2020, and 2019 was $65 thousand and $81 thousand, respectively. The aggregate intrinsic value of total options outstanding and exercisable options at March 31, 2020, was $618 thousand. Cash received from options exercised under all share-based payment arrangements for the period ended March 31, 2020 was $173 thousand. No shares vested during the periods ended March 31, 2020, and 2019, respectively. The income tax benefit recognized for the exercise of options for the periods ended March 31, 2020, and 2019, was $23 thousand and $22 thousand, respectively. As of March 31, 2020, all options are fully vested and currently no future compensation cost will be recognized related to nonvested stock-based compensation arrangements granted under the Plans. Stock Appreciation Rights ("SARs"): A summary of the status of SARs plans is presented in the following table:
|  | Number |  | Weighted Average Exercisable Price
Outstanding at December 31, 2019 |  | 67,000 |  |  | $ | 20.54 |
Granted |  | 18,000 |  |  | 15.19 |
Exercised |  | — |  |  | — |
Forfeited |  | — |  |  | — |
Outstanding at March 31, 2020 |  | 85,000 |  |  | $ | 19.40 |
Information pertaining to SARs outstanding at March 31, 2020, is as follows:
|  | SARs Outstanding |  |  |  |  |  | SARs Exercisable |  |
|  |  |  | Weighted- Average Remaining |  | Weighted- Average |  |  |  | Weighted- Average
Exercise |  | Number |  | Contractual |  | Exercise |  | Number |  | Exercise
Prices |  | Outstanding |  | Life |  | Price |  | Exercisable |  | Price
$ | 15.19 |  |  | 18,000 |  |  | 3.8 years |  | $ | 15.19 |  |  | — |  |  | $ | — |
18.12 |  |  | 21,000 |  |  | 2.8 years |  | 18.12 |  |  | — |  |  | — |
21.61 |  |  | 34,000 |  |  | 1.8 years |  | 21.61 |  |  | — |  |  | — |
$ | 21.72 |  |  | 12,000 |  |  | 0.8 years |  | 21.72 |  |  | 12,000 |  |  | 21.72 |
Outstanding, end of period |  | 85,000 |  |  | 2.3 years |  | $ | 19.40 |  |  | 12,000 |  |  | $ | 21.72 |
SARs compensation expense of ($118) thousand and $21 thousand was recognized for the period ended March 31, 2020 and 2019, respectively. The credit in expense for the period ended March 31, 2020, was due to adjustments related to the current fair value evaluation of SARs. Other stock based awards: Direct stock grants of 3,298 shares were issued to local advisory board members during the three month period ended March 31, 2019. The expense for these grants was $65 thousand and was included in salary and benefit expense for the period ended March 31, 2019. There were no direct stock grants issued for the period ended March 31, 2020. Restricted Stock Awards: A summary of the activity of the Company's unvested restricted stock awards for the period ended March 31, 2020 is presented below:
|  | Number |  | Weighted Average Grant-Date Fair Value
Balance at December 31, 2019 |  | 65,400 |  |  | $ | 21.04 |
Granted |  | 37,400 |  |  | 16.20 |
Vested |  | (4,500) |  |  | 18.12 |
Forfeited/expired |  | (1,500) |  |  | 18.12 |
Balance at March 31, 2020 |  | 96,800 |  |  | $ | 19.35 |
The Company measures the fair value of restricted shares based on the price of the Company’s common stock on the grant date, and compensation expense is recorded over the vesting period. For the three months ended March 31, 2020 and 2019, compensation expense was $110 thousand and $112 thousand, respectively, for restricted stock awards. As of March 31, 2020, there was $1.3 million of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. The cost is expected to be recognized over a weighted average period of 3.59 years. The grant-date fair value of restricted stock grants vested was $82 thousand for the period ended March 31, 2020. No restricted stock vested during the period ended March 31, 2019.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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