STOCK COMPENSATION

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

On June 8, 2021, the Corporation's shareholders approved the Corporation's 2021 Equity Incentive Plan (the "2021 Plan") which provides for the grant of stock-based awards to officers, employees and directors of the Corporation and the Bank. A Form S-8 Registration Statement was filed with the SEC on June 18, 2021 registering shares to be awarded under the 2021 Plan. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date. No grants have been issued under the 2021 Plan during the nine months ended September 30, 2021. The Prior Plan shall remain in existence solely for the purpose of administering outstanding grants.

Board of Directors' Stock Compensation

During January 2021 and 2020, 9,291 and 7,923 shares, respectively, were re-issued from treasury to fund the stock component of directors' compensation for the respective prior year. An expense of $101 thousand and $67 thousand related to this compensation was recognized during the three month periods ended September 30, 2021 and 2020, respectively. An expense of $295 thousand and $232 thousand related to this compensation was recognized during the nine month periods ended September 30, 2021 and 2020, respectively. This expense is accrued as shares are earned.

Officers' and Employees' Restricted Stock

A summary of restricted stock activity for officers and employees for the three month period ended September 30, 2021 is presented below:


	Shares	Weighted–Average Grant Date Fair Value
Nonvested at July 1, 2021	27,448	$	40.18
Granted	—
Vested	(261)	39.85
Forfeited or cancelled	—
Nonvested at September 30, 2021	27,187	$	40.23

A summary of restricted stock activity for officers and employees for the nine month period ended September 30, 2021 is presented below:


	Shares	Weighted–Average Grant Date Fair Value
Nonvested at January 1, 2021	31,830	$	40.32
Granted	—
Vested	(4,643)	41.15
Forfeited or cancelled	—
Nonvested at September 30, 2021	27,187	$	40.23

As of September 30, 2021, there was $0.8 million of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3.27 years. The total fair value of shares vested was $167 thousand and $159 thousand for the nine month periods ended September 30, 2021 and 2020, respectively.