Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

Restricted Stock provides grantees with rights to shares of common stock upon completion of a service period or achievement of Company performance measures. During the restriction period, all shares are considered outstanding and dividends are paid to the grantee. Outside directors are periodically granted restricted shares which vest over a period of less than nine months. During 2017, executive officers were granted restricted shares which vest over a three year service period and restricted shares which vest based on meeting performance measures over a one year period. Vesting schedules were unchanged from the two prior years. The following table presents the activity for Restricted Stock for the years ended December 31, 2017, 2016 and 2015:



	Twelve Months Ended
	December 31,
	2017				2016				2015
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Nonvested, beginning of period	14,901		$	23.05	14,401		$	22.98	15,151		$	22.27
Granted	14,650		27.46		14,650		23.07		14,650		23.85
Vested	(14,493	)	25.90		(13,196	)	23.00		(14,363	)	23.09
Forfeited	(657	)	23.00		(954	)	23.00		(1,037	)	23.50
Nonvested, end of period	14,401		$	24.68	14,901		$	23.05	14,401		$	22.98

The Company recognizes compensation expense over the vesting period based on the fair value of the Company's stock on the grant date. Compensation expense was $382 thousand, $314 thousand, and $328 thousand during December 31, 2017, 2016, and 2015, respectively. The total grant date fair value of Restricted Stock which vested was $375 thousand and $303 thousand for the years ended December 31, 2017 and 2016, respectively. Unrecognized compensation cost related to unvested Restricted Stock was $69 thousand at December 31, 2017. This amount is expected to be recognized over a weighted average period of one year. The Company's policy is to recognize forfeitures as they occur.