STOCK COMPENSATION

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

On June 8, 2021, the Corporation's shareholders approved the Corporation's 2021 Equity Incentive Plan (the "2021 Plan") which provides for the grant of stock-based awards to officers, employees and directors of the Corporation and the Bank. A Form S-8 Registration Statement was filed with the SEC on June 18, 2021 registering shares to be awarded under the 2021 Plan. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date. The 2021 Plan provides officers, employees and directors of the Corporation and the Bank with additional incentives to promote the growth and performance of the Corporation. The prior plan shall remain in existence solely for the purpose of administering outstanding grants.

Under the terms of the 2021 Plan, the Corporation may make discretionary grants of restricted shares of the Corporation’s common stock to or for the benefit of employees selected to participate in the 2021 Plan, the chief executive officer and members of the Board of Directors. Awards are based on the performance, responsibility and contributions of the individual and are targeted at an average of the peer group. The maximum number of shares of the Corporation’s common stock that may be awarded as restricted shares related to the 2021 Plan may not exceed 170,000, upon which time a new plan may be filed. Compensation expense for shares granted will be recognized over the vesting period of the award based upon the average closing price of the Corporation's stock for each of the prior 30 trading days ending on the grant date.

During the six months ended June 30, 2022 and 2021, 12,560 and 13,151 shares, respectively, were re-issued from treasury to fund stock compensation. The expense related to the grants made in the first quarter of 2022 is recognized over a one year vesting period. Expense related to this compensation of $0.2 million was recognized during each of the three month periods ended June 30, 2022 and 2021, respectively. Expense related to this compensation of $0.6 million and $0.5 million was recognized during the six month periods ended June 30, 2022 and 2021, respectively. No shares were granted during the three month periods ended June 30, 2022 and 2021.

A summary of restricted stock activity for the three and six months ended June 30, 2022 is presented below:


	Shares	Weighted–Average Grant Date Fair Value
Nonvested at April 1, 2022	48,288	$43.68
Granted	—
Vested	—
Forfeited or cancelled	(681)	$40.55
Nonvested at June 30, 2022	47,607	$43.72


	Shares	Weighted–Average Grant Date Fair Value
Nonvested at January 1, 2022	37,837	$42.99
Granted	12,560	$45.55
Vested	(2,109)	$42.51
Forfeited or cancelled	(681)	$40.55
Nonvested at June 30, 2022	47,607	$43.72

As of June 30, 2022, there was $1.6 million of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3.66 years. The total fair value of shares vested was $99 thousand and $156 thousand for the six month periods ended June 30, 2022 and 2021, respectively.