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Stock Options and Other Equity-Based Incentive Instruments
 6 Months Ended
Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Options and Other Equity-Based Incentive Instruments
Note 10 - 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 ratified 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 six months ended June 30, 2019 were made from the 2019 Plan.
Stock option activity during the six months
ended June 30, 2019 is summarized in the following table:
 
Number
of Shares
   
Option Price
per Share
   
Weighted
Average
Exercise Price
 
Outstanding at December 31, 2018
   
343,000
     
$
12.63
 to $23.21
    $
16.67
 
Options granted
   
—  
      
— to —
     
—  
  
Options exercised
   
(157,000
 )    
$12.63 to $19.46
     
15.92
 
Options forfeited
   
—  
      
— to —
     
—  
  
                         
Outstanding at June 30, 2019
   
186,000
     
$14.54 to $23.21
    $
17.45
 
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 June 30, 2019:
 
Currently
Exercisable
   
Currently Not
Exercisable
   
Total
Outstanding
 
Number of options
   
185,250
     
750
     
186,000
 
Weighted average exercise price
  $
17.43
    $
23.21
    $
17.45
 
Intrinsic value (in thousands)
  $
3,774
    $
11
    $
3,785
 
Weighted average remaining contractual term (yrs.)
   
3.1
     
5.3
     
3.1
 
The 750 options that are currently not exercisable as of June 30, 2019 are expected to vest, on a weighted-average basis, over the next three months. The Company did not modify any option grants during 2018 or the six months ended June 30, 2019.
Restricted stock unit (RSU) activity is summarized in the following table for the dates indicated:
                 
 
Service
Condition
Vesting RSUs
   
Market Plus
Service
Condition
Vesting RSUs
 
Outstanding at December 31, 2018
   
66,947
     
45,536
 
RSUs granted
   
35,272
     
22,898
 
RSUs added through dividend and performance credits
   
519
      
7,414
  
RSUs released
   
(26,211
 )    
(22,237
 )
RSUs forfeited/expired
   
—  
      
—  
  
                 
Outstanding at June 30, 2019
   
76,527
     
53,611
 
                 
 
 
 
 
The 76,527 of service condition vesting RSUs outstanding as of June 30, 2019 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 76,527 of service condition vesting RSUs outstanding as of June 30, 2019 are expected to vest, and be released, on a weighted-average basis, over the next 1.4 years. The Company expects to recognize $2,495,000 of
pre-tax
compensation costs related to these service condition vesting RSUs between June 30, 2019 and their vesting dates. The Company did not modify any service condition vesting RSUs during 2018 or during the six months ended June 30, 2019.
The 53,611 of market plus service condition vesting RSUs outstanding as of June 30, 2019 are expected to vest, and be released, on a weighted-average basis, over the next 2.1 years. The Company expects to recognize $1,227,000 of
pre-tax
compensation costs related to these RSUs between June 30, 2019 and their vesting dates. As of June 30, 2019, 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 80,417 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 2018 or during the six months ended June 30, 2019.