2021 Annual Report

Restricted Stock Awards In 2019 and 2020, the Company granted restricted stock awards out of the 2019 EIP. These awards vest in equal annual installments on the first four anniversaries of the date of the grant. Nonvested restricted stock awards are classified as outstanding shares with voting and forfeitable dividend rights. The following table presents an analysis of nonvested restricted stock awards outstanding for the year ended December 31, 2021 and 2020:

December 31, 2021

December 31, 2020

Weighted

Weighted

Number of Average Grant Shares Date Fair Value

Average

Shares Exercise Price

Nonvested at December 31, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,962 $ Granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35,849) Forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — Nonvested at December 31, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,113 $

12.63 132,960 $ — 18,641 12.69 (32,439) — (8,200) 12.59 110,962 $

12.92 10.29 12.92 10.91 12.63

Compensation expense associated with the restricted stock awards is recognized on a straight-line basis over the period that the restrictions associated with the awards lapse based on the total cost of the award at the grant date. For the years ended December 31, 2021, 2020 and 2019, the Company recognized compensation expense for restricted stock awards of $455,000, $441,000 and $31,000, respectively. As of December 31, 2021, there was $894,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2019 EIP that is expected to be recognized over a weighted-average period of 2.0 years. In addition, during the year ended December 31, 2021, the Company issued 18,920 shares of common stock to directors as a part of their compensation for their annual services on the Company’s board of directors. The aggregate value of the shares issued to directors of $319,000 was included in stock based compensation expense in the accompanying consolidated statements of shareholders’ equity. Restricted Stock Units In 2020, the Company began granting restricted stock units out of the 2019 EIP. Restricted stock units granted out of the 2019 EIP represent the right to receive one share of Company stock upon vesting and vest in equal annual installments on the first four anniversaries of the date of the grant. Nonvested restricted stock units have no voting or dividend rights and are not considered outstanding until vesting.

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