Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 2 – Stock-Based Compensation

There was no compensation expense related to stock option grants for the three months ended September 30, 2020.  CTBI’s compensation expense related to stock option grants was $2 thousand for the nine months ended September 30, 2020 and $8 thousand and $29 thousand, respectively, for the three and nine months ended September 30, 2019.  As of September 30, 2020, there was no unrecognized compensation expense related to unvested stock option awards, as all stock option awards have fully vested.  There were no stock options granted in the first nine months of 2020 or 2019.

Restricted stock expense for the three and nine months ended September 30, 2020 was $236 thousand and $706 thousand, respectively, including $21 thousand and $63 thousand in dividends paid for each period.  Restricted stock expense for the three and nine months ended September 30, 2019 was $205 thousand and $616 thousand, respectively, including $19 thousand and $56 thousand in dividends paid for each period.  As of September 30, 2020, there was a total of $1.7 million of unrecognized compensation expense related to restricted stock grants that will be recognized as expense as the awards vest over a weighted average period of 2.7 years.  No shares of restricted stock were granted during the three months ended September 30, 2020 and 2019.  There were 21,544 and 27,921 shares of restricted stock granted during the nine months ended September 30, 2020 and 2019, respectively.  The restricted stock was issued pursuant to the terms of CTBI’s 2015 Stock Ownership Incentive Plan.  The restrictions on the restricted stock will lapse ratably over four years, except for a 2,500 management retention restricted stock award granted in January 2020 which will vest at the end of five years, subject to such management employee’s continued employment.  However, in the event of certain participant employee termination events occurring within 24 months of a change in control of CTBI or the death of the participant, the restrictions will lapse, and in the event of the participant’s disability, the restrictions will lapse on a pro rata basis.  The Compensation Committee will have discretion to review and revise restrictions applicable to a participant’s restricted stock in the event of the participant’s retirement.