Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

Note 11 - Employee Benefit Plans

The Bank has established a 401(k) profit sharing plan, which allows eligible employees to save at a minimum one percent of eligible compensation on a pre-tax basis, subject to certain Internal Revenue Service limitations. The Bank will match 50% of employee 401(k) contributions up to four percent of total eligible compensation. In addition, the Bank may make a discretionary contribution from time to time. A participant is 100% vested in the participant’s deferral contributions and employer matching contributions. A six-year vesting schedule applies to employer discretionary contributions. Contributions expensed for the 401(k) profit sharing plan for both the employer matching contribution and the discretionary contribution were $1.0 million, $1.2 million and $1.1 million for 2020, 2019 and 2018, respectively.

Restricted Stock Awards

The Company has a Long-Term Stock Incentive Plan under which 37,382 shares of the Company’s restricted stock were issued to 92 employees during 2020, 38,100 shares of restricted stock were issued to 94 employees during 2019 and 33,000 shares of restricted stock were issued to 80 employees during 2018. Under the plan, the shares generally vest 100% in three years. During the 3 year vesting period, the employees receive dividends or dividend equivalent compensation on the shares. Due to employee termination, there were 2,175, 3,220, and 2,620 shares forfeited during 2020, 2019 and 2018, respectively. During 2020, eight employees retired and received 10,890 shares from the shares awarded in 2017, 2018, 2019 and 2020. During 2019, due to retirement, three employees received 14,300 shares from awards granted in 2016, 2017 and 2018. During 2020, 21,340 shares awarded in 2017 were 100% vested and 53 employees received the stock. One employee received accelerated vesting of 1,050 shares awarded in 2019, 2018 and 2017. Also during 2020, 1,600 shares awarded in 2019 were 100% vested and three employees received the stock. One employee received immediate vesting of 551 shares of stock. During 2019, 26,070 shares awarded in 2016 were vested 100% and 63 employees received the stock. During 2018, 28,790 shares awarded in 2015 were vested 100% and 56 employees received the stock. Compensation expense applicable to the restricted stock awards totaled $1.0 million, $1.1 million and $745 thousand for the years ending December 31, 2020, 2019 and 2018, respectively.

The table below summarizes the details of the restricted shares issued, vested, and forfeited for the years ending December 31, 2020, 2019 and 2018.

	Year Ended December 31,
	2020				2019				2018
	Number of Shares		Number of Employees		Number of Shares		Number of Employees		Number of Shares		Number of Employees
Restricted shares issued		37,382		92		38,100		94		33,000		80
Restricted shares vested		23,491		57		26,070		63		28,790		56
Restricted shares awarded due to retirement		10,890		8		14,300		3		-		-
Restricted shares awarded for other		1,050		1		-		-		-		-
Restricted shares forfeited		2,175		5		3,220		4		2,620		5

The following table summarizes the activity of restricted stock awards as of December 31:

	Year Ended December 31,
	2020					2019					2018
	Number of Shares			Weighted average fair value per award		Number of Shares			Weighted average fair value per award		Number of Shares			Weighted average fair value per award
Beginning of period		88,450		$	31.52		93,940		$	29.87		92,350		$	19.17
Granted		37,382			21.80		38,100			25.14		33,000			44.63
Vested		(35,431	)		29.27		(40,370	)		21.76		(28,790	)		13.18
Forfeited		(2,175	)		21.92		(3,220	)		30.12		(2,620	)		44.04
Nonvested, end of period		88,226		$	28.40		88,450		$	31.52		93,940		$	29.87

As of December 31, 2020, there was $1.3 million of unrecognized compensation cost related to the nonvested portion of restricted stock awards under the plan to be recognized over the next three years.

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