Stock Options and Other Equity-Based Incentive Instruments

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock Options and Other Equity-Based Incentive Instruments

The Company’s 2009 Equity Incentive Plan (2009 Plan) expired on March 26, 2019. While no new awards can be granted under the 2009 Plan, existing grants continue to be governed by the terms, conditions and procedures set forth in any applicable award agreement. On April 16, 2019, the Board of Directors adopted the 2019 Equity Incentive Plan (2019 Plan) which was approved by shareholders on May 21, 2019. The 2019 Plan allows for up to 1,500,000 shares to be issued in connection with equity-based incentives. All grants of equity awards made during the nine months ended September 30, 2020, were made from the 2019 Plan.

Stock option activity during the nine months ended September 30, 2020 is summarized in the following table:


	Number of Shares	Option Price per Share	Weighted Average Exercise Price
Outstanding at December 31, 2019	160,500	$14.54 to $23.21	$	17.60
Options granted	—	—	—
Options exercised	(32,000)	$14.54 to $19.46	17.10
Options forfeited	—	—	—
Outstanding at September 30, 2020	128,500	$14.54 to $23.21	$	17.72

The following table shows the number, weighted-average exercise price, intrinsic value, and weighted average remaining contractual life of options exercisable, options not yet exercisable and total options outstanding as of September 30, 2020:


	Currently Exercisable		Currently Not Exercisable		Total Outstanding
Number of options	128,500		—		128,500
Weighted average exercise price	$	17.72	$	—	$	17.72
Intrinsic value (in thousands)	$	870	$	—	$	870
Weighted average remaining contractual term (yrs.)	2.2		n/a		2.2

As of September 30, 2020 all options outstanding are fully vested and are expected to be exercised prior to expiration. The Company did not modify any option grants during 2019 or the nine months ended September 30, 2020.

Activity related to restricted stock unit awards during the nine months ended September 30, 2020 is summarized in the following table:


	Service Condition Vesting RSUs	Market Plus Service Condition Vesting RSUs
Outstanding at December 31, 2019	68,597	51,312
RSUs granted	64,036	46,416
RSUs added through dividend and performance credits	2,274	5,847
RSUs released	(31,708)	(20,265)
RSUs forfeited/expired	1,373	(1,695)
Outstanding at September 30, 2020	104,572	81,615

During the three months ended September 30, 2020 and 2019 there were no restricted stock unit awards granted under the 2019 Plan.

The 104,572 of service condition vesting RSUs outstanding as of September 30, 2020 include a feature whereby each RSU outstanding is credited with a dividend amount equal to any common stock cash dividend declared and paid, and the credited amount is divided by the closing price of the Company’s stock on the dividend payable date to arrive at an additional amount of RSUs outstanding under the original grant. The dividend credits follow the same vesting requirements as the RSU awards and are not considered participating securities. The 104,572 of service condition vesting RSUs outstanding as of September 30, 2020 are expected to vest, and be released, on a weighted-average basis, over the next 1.60 years. The Company expects to recognize $2,782,321 of pre-tax compensation costs related to these service condition vesting RSUs between September 30, 2020 and their vesting dates. The Company did not modify any service condition vesting RSUs during 2019 or during the nine months ended September 30, 2020.

The 81,615 of market plus service condition vesting RSUs outstanding as of September 30, 2020 are expected to vest, and be released, on a weighted-average basis, over the next 2.10 years. The Company expects to recognize $1,469,701 of pre-tax compensation costs related to these RSUs between September 30, 2020 and their vesting dates. As of September 30, 2020, the number of market plus service condition vesting RSUs outstanding that will actually vest, and be released, may be reduced to zero or increased to 122,423 depending on the total return of the Company’s common stock versus the total return of an index of bank stocks from the grant date to the vesting date. The Company did not modify any market plus service condition vesting RSUs during 2019 or during the nine months ended September 30, 2020.