Common Stock

6 Months Ended

Jun. 30, 2020

Common Stock Number Of Shares Par Value And Other Disclosures [Abstract]

Common Stock

(12) Common Stock

Treasury Stock Repurchase Program

During the first quarter of 2020, Mid Penn announced the adoption of a treasury stock repurchase program authorizing the repurchase of up to $15,000,000 of Mid Penn’s outstanding common stock, which represents approximately 9.6% of the issued shares based on Mid Penn’s closing stock price and shares issued as of June 30, 2020.  Under the treasury stock purchase program, Mid Penn may conduct repurchases of its common stock through open market transactions (which may be by means of a trading plan adopted under SEC Rule 10b5-1) or in privately negotiated transactions.  Repurchases under the program are made at the discretion of management and are subject to market conditions and other factors.  There is no guarantee as to the exact number of shares that Mid Penn may repurchase.  The repurchase plan became effective March 19, 2020 and is authorized to continue through March 19, 2021, unless otherwise extended by Mid Penn’s Board of Directors.  

The repurchase plan may be modified, suspended or terminated at any time, in Mid Penn’s discretion, based upon a number of factors, including liquidity, market conditions, the availability of alternative investment opportunities and other factors Mid Penn deems appropriate.  The repurchase program does not obligate Mid Penn to repurchase any shares.  

As of June 30, 2020, Mid Penn had repurchased 80,523 shares of common stock at an average price of $19.37 per share under the treasury stock repurchase program.

Authorized Shares

At the May 14, 2019 annual shareholder meeting, Mid Penn shareholders approved an amendment to the Articles of Incorporation to increase the number of authorized shares of common stock from 10,000,000 shares to 20,000,000 shares.

Restricted Stock Plan

On May 6, 2014, Mid Penn shareholders approved the 2014 Restricted Stock Plan (the “Plan”), which authorizes the issuance of awards that shall not exceed, in the aggregate, 100,000 shares of common stock.  Awards under the Plan are limited to employees and directors of the Corporation, and the recipients are selected by the Compensation Committee of the Board of Directors, to advance the best interest of Mid Penn and its shareholders.  

Share-based compensation expense relating to restricted stock is recognized on a straight-line basis over the vesting periods of the awards and is a component of salaries and benefits expense.  As of June 30, 2020, a total of 57,655 restricted shares were granted under the Plan, of which 2,446 shares were forfeited and available for reissuance, 27,271 shares were vested, and the remaining 27,938 shares were unvested. One hundred shares were forfeited due to a voluntary termination of an employee during the six months ended June 30, 2020, while no shares were forfeited during the six months ended June 30, 2019. The Plan shares granted and vested resulted in $96,000 in share-based compensation expense for the three months ended June 30, 2020, while $80,000 of share-based compensation expense was recorded for the three months ended June 30, 2019.  Compensation expense related to the Plan was $192,000 for the six months ended June 30, 2020 and $160,000 for the same period in 2019.