Stock-Based Compensation

3 Months Ended

Mar. 31, 2021

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 March 31, 2021.  CTBI’s compensation expense related to stock option grants was $2 thousand for the three months ended March 31, 2020.  As of March 31, 2021, 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 three months of 2021 or 2020.

Restricted stock expense for the three months ended March 31, 2021 and 2020 was $213 thousand and $226 thousand, respectively, including $18 thousand and $21 thousand, respectively, in dividends paid for those periods. As of March 31, 2021, 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 2.6 years.  There were 9,193 and 21,544 shares of restricted stock granted during the three months ended March 31, 2021 and 2020, 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 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.