Equity Incentive Plan

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

(12) Equity Incentive Plan

At the Company’s 2014 annual meeting, the shareholders adopted the Company’s 2014 Incentive Plan (“2014 Incentive Plan”). The 2014 Incentive Plan authorizes the Company to grant options, stock awards, stock units and other awards for up to 375,000 common shares of the Company. There were 60,049 common shares available for future grants under this plan at September 30, 2023.

No options were granted under the 2014 Incentive Plan during the nine- months ended September 30, 2023 and 2022.

Each year, the Board of Directors has awarded restricted common shares to senior officers of the Company. The restricted shares vest ratably over a three-year or five-year period following the grant date. The product of the number of restricted shares granted and the grant date market price of the Company’s common shares determines the fair value of restricted shares awarded under the Company’s 2014 Incentive Plan. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award.

The Company classifies share-based compensation for employees with “Compensation expense” in the Consolidated Statements of Operations.

The following is a summary of the Company’s outstanding restricted common shares and changes therein for the three- and nine-month periods ended September 30, 2023:


	Three months ended				Nine Months Ended
	September 30, 2023				September 30, 2023
	Number of Restricted Shares		Weighted Average Grant Date Fair Value		Number of Restricted Shares			Weighted Average Grant Date Fair Value
Nonvested at beginning of period		88,422	$	21.98		70,096		$	21.88
Granted		—		—		47,536			21.85
Vested		—		—		(27,470	)		21.52
Forfeited		—		—		(1,740	)		21.74
Nonvested at end of period		88,422	$	21.98		88,422		$	21.98

The following is a summary of the status of the Company’s outstanding restricted common shares as of September 30, 2023:


At September 30, 2023
Date of Award	Shares		Remaining Expense		Remaining Vesting Period (Years)
March 14, 2019		1,924	$	9		0.25
March 14, 2020		4,265		51		1.25
March 3, 2021		7,776		103		2.25
March 3, 2021		6,793		33		0.25
March 3, 2022		9,554		177		3.25
March 3, 2022		11,261		160		1.25
March 14, 2023		17,103		296		4.25
March 14, 2023		29,746		466		2.25
		88,422	$	1,295		2.37

The Company recorded $191 and $153 of share-based compensation expense during the three months ended September 30, 2023 and 2022, respectively. At September 30, 2023, the total compensation cost related to unvested awards not yet recognized was $1,296, which was expected to be recognized over the weighted average remaining life of the grants of 2.37 years.