STOCK-BASED COMPENSATION PLANS

9 Months Ended

Sep. 30, 2020

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS

10. STOCK-BASED COMPENSATION PLANS

The Corporation has a Stock Incentive Plan for a selected group of officers and an Independent Directors Stock Incentive Plan. The 2020 restricted stock awards under the Stock Incentive Plan vest ratably over three years, and the 2020 restricted stock issued under the Independent Directors Stock Incentive Plan vests over one year. Following is a summary of restricted stock awards granted in the nine-month period ended September 30, 2020:

(Dollars in Thousands)		Aggregate
		Grant
		Date
	Number of	Fair
	Shares	Value
1st quarter 2020 awards:
Time-based awards to independent directors	7,580	$	200
Time-based awards to employees	30,381		801
Performance-based awards to employees	17,903		343
3rd quarter 2020 awards,
Time-based awards to employees	15,076		300
Total	70,940	$	1,644

Compensation cost related to restricted stock is recognized based on the fair value of the stock at the grant date over the vesting period, adjusted for estimated and actual forfeitures. Total annual stock-based compensation for the year ending December 31, 2020 is estimated to total $920,000. Total stock-based compensation expense attributable to restricted stock awards amounted to $248,000 in the third quarter 2020 and $215,000 in the third quarter 2019. Total stock-based

compensation expense attributable to restricted stock awards amounted to $672,000 in the nine-month period ended September 30, 2020 and $646,000 in the nine-month period ended September 30, 2019.