Stock Compensation

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation

3. STOCK COMPENSATION

The Corporation has a stock incentive plan for key employees and independent directors. The stock incentive plan, which is administered by a committee of the Board of Directors, provides for aggregate grants of up to 500,000 shares of common stock in the form of nonqualified options or restricted stock. For key employees, the plan vesting is one-fourth of the granted options or restricted stock per year beginning one year after the grant date, with 100% vested on the fourth anniversary of the grant date. For independent directors, the vesting schedule is one-third of the granted options or restricted stock per year beginning one year after the grant date, with 100% vested on the third anniversary of the grant date.

At June 30, 2016, there was no unrecognized compensation cost related to nonvested stock options granted under this plan and no stock options were granted during the three and six month periods ended June 30, 2016 and 2015.

Compensation expense for the restricted stock awards is recognized over the requisite service period noted above based on the fair value of the shares at the date of grant. Nonvested restricted stock awards are recorded as a reduction of additional paid-in-capital in shareholders’ equity until earned. Compensation expense resulting from these restricted stock awards was $172 and $412 for the three and six months ended June 30, 2016 and $148 and $305 for the three and six months ended June 30, 2015. As of June 30, 2016, there was $1,551 of total unrecognized compensation cost related to unvested restricted stock awards to be recognized over the next five years.

A summary of changes in nonvested restricted stock awards for the three months ended June 30, 2016 follows:

			Per Share Weighted Average
	Shares		Grant Date Fair Value
Nonvested at beginning of period		101,728	$	17.34
Granted		1,500		17.83
Vested		0		0
Nonvested at end of period		103,228	$	17.35

A summary of changes in nonvested restricted stock awards for the six months ended June 30, 2016 follows:

				Per Share Weighted Average
	Shares			Grant Date Fair Value
Nonvested at beginning of period		84,600		$	17.01
Granted		51,500			17.64
Vested		(32,872	)		16.92
Nonvested at end of period		103,228		$	17.35

The fair value of shares vested during the three and six month periods ended June 30, 2016 was $542.