Share Based Incentive Plan

12 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

12. SHARE-BASED INCENTIVE PLAN

The Company established a Restricted Stock plan (“Restricted Stock”) in December 2006 for the purpose of attracting and retaining officers, key employees and non-employee board members. Share awards vest in equal annual instalments over a three or five year period from date of issuance. Non-vested shares have voting rights and are eligible for any dividends paid to common shares. The Company recognized compensation cost for these fixed awards over the service vesting period, which represents the requisite service period, using the straight-line method. The value of non-vested shares was calculated based on the offering price of the shares in the most recent private placement offering of $10.00, adjusted for stock dividends since granted and assumed selling costs (currently $8.60), which management believes approximates fair market value as of the date of grant.

A summary of the activity for the Company’s restricted shares was as follows:

Outstanding shares:	Common Shares

Balance at December 31, 2014		101,890
Granted		79,162
Vested		(54,051	)
Cancelled		(4,613	)
Balance at December 31, 2015		122,388

The non-vested restricted shares outstanding as of December 31, 2015 will vest over the next one to ten years.

The value of non-vested Restricted Stock granted during the years ended December 31, 2015 and 2014 was approximately $1,036,000 and $876,000, respectively.

Share-based compensation expense for the years ended December 31, 2015 and 2014 was approximately $465,000 and $456,000, respectively.