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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2021
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATIONWe account for stock-based compensation under the fair value recognition provisions of ASC Topic 718 - Compensation - Stock Compensation. We recognize stock-based compensation cost over the award’s requisite service period on a straight-line basis for time-based restricted stock grants and performance-based restricted stock grants. We record forfeitures as they occur for all stock-based compensation. The following table presents our total stock-based compensation expense:
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2021 |  | 2020
Employee stock-based compensation expense |  |  |  |  |  |  |  |
Pre-tax |  |  |  |  |  | $ | 163 |  |  | $ | 526 |
Post-tax (1) |  |  |  |  |  | 129 |  |  | 416 |
Director stock-based compensation expense |  |  |  |  |  |  |  |
Pre-tax |  |  |  |  |  | 97 |  |  | 174 |
Post-tax (1) |  |  |  |  |  | 77 |  |  | 137 |
(1) The after tax amounts are determined using the 21% corporate federal tax rate. We had approximately $1,753,000 of unrecognized stock compensation expense at March 31, 2021 related to non-vested stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 2.1 years. We had approximately $38,000 of unrecognized director stock-based compensation expense at March 31, 2021 related to non-vested director stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 0.1 years. Restricted stock, restricted stock units and performance stock units Stock-based compensation cost for restricted stock awards, restricted stock units and performance stock units is measured based on the closing fair market value of our common stock on the date of grant, which vest in equal installments over the requisite service period of typically three years. Restricted stock awards granted to non-employee directors vest over a one-year period. Each restricted stock unit and performance stock unit represents our obligation to deliver to the holder one share of common stock upon vesting. Performance stock units vest based on the Company's return on average equity compared to a defined group of peer companies. On the grant date, we issue the target number of performance stock units. They are subject to forfeitures if performance goals are not met. The actual number of performance stock units earned can vary from zero to 150 percent of the target for the 2020, 2019, and 2018 awards. We granted 79,214 and 1,175 shares of restricted common stock during the three-month periods ended March 31, 2021 and 2020, respectively, which had a weighted-average grant date fair value of $5.97 and $8.75 per share, respectively. The following table presents certain information related to the activity of our non-vested common stock grants:
| Number of Restricted Shares |  | Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2020 | 259,006 |  |  | $ | 10.06 |
Granted | 79,214 |  |  | 5.97 |
Less: Forfeited | 26,723 |  |  | 10.47 |
Less: Vested | 9,418 |  |  | 17.57 |
Outstanding as of March 31, 2021 | 302,079 |  |  | $ | 8.72 |
Stock options Stock option fair value was estimated on the grant date using the Black-Scholes-Merton formula. Stock options vest in equal installments over the requisite service period of typically three years. The following weighted-average assumptions were used to value the stock options granted:
| 2021
Expected annual dividend yield | 1.70 | %
Expected volatility | 41.59 | %
Risk-free interest rate | 2.35 | %
Expected term | 6
Expected annual dividend yield is based on the current quarterly dividend of $0.06 per share and the stock price on the grant date. The expected volatility is a historical volatility calculated based on the daily closing prices over a period equal to the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date. Expected term takes into account the three-year graded vesting term and the 10-year contractual term of the option. The following table presents certain information related to the activity of our non-vested stock option grants:
| Number of Stock Options |  | Weighted Average Exercise Prices |  | Weighted Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value
Outstanding as of December 31, 2020 | 144,006 |  |  | $ | 13.00 |  |  | 8.77 |  |  | $ | — |
Granted | — |  |  | — |  |  | — |  |  | — |
Less: Forfeited | 21,777 |  |  | 10.49 |  |  | — |  |  | — |
Less: Expired | — |  |  | — |  |  | — |  |  | — |
Less: Exercised | — |  |  | — |  |  | — |  |  | — |
Outstanding as of March 31, 2021 | 122,229 |  |  | $ | 13.44 |  |  | 8.30 |  |  | $ | — |
Vested as of March 31, 2021(1) | 90,190 |  |  | $ | 19.11 |  |  | 7.06 |  |  | $ | — |
Exercisable as of March 31, 2021 | 30,596 |  |  | $ | 19.11 |  |  | 7.06 |  |  | $ | — |

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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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