Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 2 – Stock-Based Compensation

Restricted stock expense for the three and nine months ended September 30, 2023 was $0.4 million and $1.2 million, respectively, including $45 thousand and $133 thousand, respectively, in dividends paid for those periods.  Restricted stock expense for the three and nine months ended September 30, 2022 was $0.3 million and $1.0 million, respectively, including $27 thousand and $73 thousand, respectively, in dividends paid for those periods.  As of September 30, 2023, there was a total of $3.3 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 3.2 years. There were no shares of restricted stock granted during the three months ended September 30, 2023 and 2022.  There were 52,865 and 40,438 shares of restricted stock granted during the nine months ended September 30, 2023 and 2022, 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 the 5,000 management retention restricted stock award granted in April 2022 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.There were no shares of restricted stock forfeited during the three months ended September 30, 2023, but there were 790 shares of restricted stock forfeited during the nine months ended September 30, 2023.  No shares were forfeited during the three and nine months ended September 30, 2022.

There was no compensation expense related to stock option grants for the three and nine months ended September 30, 2023 and 2022. As of September 30, 2023, 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 2023 or 2022.