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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2020
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | Note 10 - Stock-Based Compensation At the 2016 annual meeting, stockholders approved the Shore Bancshares, Inc. 2016 Stock and Incentive Plan (“2016 Equity Plan”), replacing the Shore Bancshares, Inc. 2006 Stock and Incentive Plan (“2006 Equity Plan”), which expired on that date. The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one- to five-year period of time, and, in the case of stock options, expire 10 years from the grant date. As part of the 2016 Equity Plan, a performance equity incentive award program, known as the “Long-term incentive plan” allows participating officers of the Company to earn incentive awards of performance share/restricted stock units if certain pre-determined targets are achieved at the end of a three-year performance cycle. Stock-based compensation expense based on the grant date fair value is recognized ratably over the requisite service period for all awards and reflects forfeitures as they occur. The 2016 Equity Plan originally reserved 750,000 shares of common stock for grant, and 616,298 shares remained available for grant at March 31, 2020. The following tables provide information on stock-based compensation expense for the three months ended March 31, 2020 and 2019.
|  | March 31,
(Dollars in thousands) |  | 2020 |  | 2019
Stock-based compensation expense |  | $ | 61 |  | $ | 63
Excess tax benefits related to stock-based compensation |  |  | 7 |  |  | 1
|  | March 31, |
(Dollars in thousands) |  | 2020 |  | 2019 |
Unrecognized stock-based compensation expense |  | $ | 257 |  | $ | 388 |
Weighted average period unrecognized expense is expected to be recognized |  |  | 1.8 | years |  | 1.3 | years
The following table summarizes restricted stock award activity for the Company under the 2016 Equity Plan for the three months ended March 31, 2020.
|  | Three Months Ended March 31, 2020
|  |  |  | Weighted Average
|  | Number of |  | Grant Date
|  | Shares |  | Fair Value
Nonvested at beginning of period |  | 15,702 |  | $ | 15.36
Granted |  | 20,167 |  |  | 14.50
Vested |  | (15,702) |  |  | 15.36
Forfeited |  | — |  |  | —
Nonvested at end of period |  | 20,167 |  | $ | 14.50
The fair value of restricted stock awards that vested during the first three months of 2020 and 2019 was $254 and $520 thousand, respectively. Restricted stock units (RSUs) are similar to restricted stock, except the recipient does not receive the stock immediately, but instead receives it upon the terms and conditions of the Company’s long-term incentive plans which are subject to performance milestones achieved at the end of a three-year period. Each RSU cliff vests at the end of the three-year period and entitles the recipient to receive one share of common stock on a specified issuance date. The recipient does not have any stockholder rights, including voting rights, with respect to the shares underlying awarded RSUs until the recipient becomes the holder of those shares. During 2017, the Company entered into a long-term incentive plan agreement with officers of the Company and its subsidiaries to award RSUs based on a performance metric to be achieved as of December 31, 2019. Based on the results for the year ended December 31, 2019, 6,451 shares were vested. The following table summarizes restricted stock units activity at the end of the performance cycle for the Company under the 2016 Equity Plan for the three months ended March 31, 2020.
|  | Three Months Ended March 31, 2020
|  |  |  | Weighted Average
|  | Number of |  | Grant Date
|  | Shares |  | Fair Value
Outstanding at beginning of period |  | 6,451 |  | $ | 16.57
Granted |  | — |  |  | —
Vested |  | (6,451) |  |  | 16.57
Forfeited |  | — |  |  | —
Outstanding at end of period |  | — |  | $ | —
The fair value of restricted stock units that vested during the first three months of 2020 and 2019 was $107 thousand and $237 thousand, respectively. The following table summarizes stock option activity for the Company under the 2016 Equity Plan for the three months ended March 31, 2020.
|  | Three Months Ended March 31, 2020
|  |  |  | Weighted Average
|  | Number of |  | Grant Date
|  | Shares |  | Exercise Price
Outstanding at beginning of period |  | 11,671 |  | $ | 9.25
Granted |  | — |  |  | —
Exercised |  | — |  |  | —
Expired/Cancelled |  | — |  |  | —
Outstanding at end of period |  | 11,671 |  | $ | 9.25
Exercisable at end of period |  | 11,671 |  | $ | 9.25
There were no stock options granted during the three months ended March 31, 2020 and March 31, 2019. At the end of the first quarter of 2020, the aggregate intrinsic value of the options outstanding under the 2016 Equity Plan was $19 thousand based on the $10.85 market value per share of the Company’s common stock at March 31, 2020. Similarly, the aggregate intrinsic value of the options exercisable was $19 thousand at March 31, 2020. At March 31, 2020, the weighted average remaining contract life of options outstanding and exercisable was 4.5 years.

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- Definition The entire disclosure for share-based payment arrangement. + 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 + Details
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