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Note 3 - Stock-based Compensation
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Compensation and Employee Benefit Plans [Text Block]

NOTE 3 - STOCK-BASED COMPENSATION

 

The Company had no nonvested stock options outstanding as of September 30, 2020 and 2019.

 

Stock option activity during the nine months ended September 30, 2020 is as follows:

 

      

Weighted-

 
      

average

 
      

Exercise Price

 
  

Shares

  

Per Share

 
         

Outstanding, January 1, 2020

  14,500  $8.78 

Exercised

  (1,500)  8.78 
         

Outstanding, September 30, 2020

  13,000  $8.78 
         

Exercisable, September 30, 2020

  13,000  $8.78 

 

The following table presents the activity during the nine months ended September 30, 2020 related to awards of restricted stock:

 

      

Weighted-

 
      

average

 
      

Grant Date Fair

 
  

Units

  

Value Per Unit

 
         

Nonvested at January 1, 2020

  56,066  $21.67 

Granted

  22,700   26.09 

Vested

  (11,006)  19.35 

Nonvested at September 30, 2020

  67,760  $23.52 
         

Expected to vest as of September 30, 2020

  1,000  $22.65 

 

The Company recognizes restricted stock forfeitures in the period they occur.

 

Share-based compensation (recovery) expense of ($75,000) and $180,000 was recognized for the three-month periods ended September 30, 2020 and 2019, respectively. Share-based compensation (recovery) expense of ($188,000) and $270,000 was recognized for the nine-month periods ended September 30, 2020 and 2019, respectively. The (recovery) expense recorded for the three and nine-month periods ended September 30, 2020 is the result of the decrease in the market valuations of the plans during these periods. Vesting of shares under the plan is contingent on a combination of service period and a performance condition tied to the total shareholder return on the Company’s stock. Due to the change in market conditions during 2020, there was a decrease in the probability of the achievement of the performance condition which resulted in a decrease in the liability related to the plan and a reversal of compensation expense. Since the shares of restricted stock are historically paid out at the vesting date in a combination of shares and cash, the Company has recorded a liability related to this plan which totals $289,000 and $416,000 at September 30, 2020 and 2019, respectively. When the shares vest, the amount distributed in shares is transferred to common stock and the remainder is distributed in cash.

 

Total unrecognized stock compensation cost related to nonvested share-based compensation on restricted stock as of September 30, 2020 totals $228,000, of which $42,000 is estimated for the rest of 2020, $129,000 for 2021, $51,000 for 2022, and $6,000 for 2023.