Note 7 - Share-based Compensation

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 7 – Share-Based Compensation:

Share-based compensation expense is recorded in selling and administrative expense in the statements of comprehensive income. The following table details the share-based compensation expense by type of award for the periods presented (in thousands):

	Three Months Ended March 31,
	2023		2022
Stock options and SARs	$	309	$	360
Restricted stock		590		619
Performance shares		181		233
Total share-based compensation expense	$	1,080	$	1,212

Stock Options and Stock Appreciation Rights (“SARs”)

The Company grants stock options and stock-settled SARs to employees that allow them to purchase shares of the Company’s common stock. Stock options are also granted to outside members of the Board of Directors of the Company. The Company determines the fair value of stock options and SARs at the date of grant using the Black-Scholes valuation model.

All stock options and SARs granted prior to August 3, 2018 vested immediately when granted. Awards issued thereafter vest between one and three years after the grant date. Employee awards expire five years after the grant date, and those issued to directors expire ten years after the grant date. The Company issues new shares upon the exercise of stock options and SARs. Stock options, as well as SARs granted in tandem with stock options, are subject to accelerated vesting under certain circumstances as outlined in the 2013 Incentive Stock and Awards Plan (the “2013 Plan”) or 2022 Equity Incentive and Awards Plan (the “2022 Plan”), as applicable. 

A summary of stock option transactions during the three months ended March 31, 2023 follows:

						Weighted Average		Aggregate
	No. of			Weighted Average		Remaining Life		Intrinsic Value
	Shares			Exercise Price		(in years)		(in thousands)
Outstanding, January 1, 2023		962,775		$	15.89		3.26	$	301
Granted(1)		182,097			12.04
Exercised		(4,604	)		7.60
Lapsed or cancelled		(92,457	)		20.77
Outstanding, March 31, 2023		1,047,811			14.83		3.46		30
Exercisable, March 31, 2023		536,233			15.41		2.26		30

⁽¹⁾ The weighted average grant date fair value of stock options granted was $4.58 per share.

As of March 31, 2023, the Company had $1.8 million in unrecognized compensation cost related to nonvested stock options to be recognized over the remaining weighted average vesting period of 1.8 years.

A summary of stock-settled SARs transactions during the three months ended March 31, 2023 follows:

						Weighted Average		Aggregate
	No. of			Weighted Average		Remaining Life		Intrinsic Value
	Shares			Exercise Price		(in years)		(in thousands)
Outstanding, January 1, 2023		320,385		$	15.23		2.23	$	69
Granted(1)		51,209			12.04
Exercised		-			-
Lapsed or cancelled		(37,243	)		23.59
Outstanding, March 31, 2023		334,351			13.81		2.66		4
Exercisable, March 31, 2023		226,088			13.51		1.79		4

⁽¹⁾ The weighted average grant date fair value of SARs granted was $4.58 per share.

As of March 31, 2023, the Company had $0.4 million in unrecognized compensation cost related to nonvested SARs to be recognized over the remaining weighted average vesting period of 1.7 years.

Restricted Stock

The Company has granted shares of restricted stock to directors and certain employees, which vest at a specified future date, generally after three years, over five years or when certain conditions are met. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan or 2022 Plan, as applicable. Expense for each of these grants is based on the fair value at the date of the grant and is being recognized on a straight-line basis over the respective service period.

A summary of restricted stock transactions during the three months ended March 31, 2023 follows:

				Weighted Average
	No. of			Grant Date
	Shares			Fair Value
Outstanding, January 1, 2023		372,470		$	20.45
Granted		117,025			12.04
Vested		(65,215	)		15.00
Forfeited		-			-
Outstanding, March 31, 2023		424,280			18.97

As of March 31, 2023, the Company had $5.4 million of unrecognized compensation cost related to nonvested restricted stock grants expected to be recognized over the remaining weighted average vesting period of 2.5 years.

Performance Shares

The Company has granted performance shares, which either contain only service-based vesting conditions or service-based and performance-based vesting conditions. The service-based awards vest after the service period is met, which is generally three to five years. Expense for these grants is based on the fair value on the date of the grant and is being recognized on a straight-line basis over the respective service period. The performance-based awards generally vest after five years if the performance and service targets are met. The Company evaluates the performance conditions associated with these grants each reporting period to determine the expected number of shares to be issued. Expense for grants of performance shares is recognized on a straight-line basis over the respective service period based on the grant date fair value and expected number of shares to be issued. The awards are subject to accelerated vesting on a pro rata basis under certain circumstances as outlined in the 2013 Plan or 2022 Plan, as applicable, except in those circumstances in which award agreements or change in control agreements specify full vesting.

A summary of performance share transactions during the three months ended March 31, 2023 follows:

			Weighted Average
	No. of		Grant Date
	Shares		Fair Value
Outstanding, January 1, 2023		199,451	$	20.57
Granted		94,028		12.56
Vested		-		-
Forfeited		-		-
Outstanding, March 31, 2023		293,479		18.00

As of March 31, 2023, the Company had $2.3 million of unrecognized compensation cost related to nonvested performance share grants expected to be recognized over the remaining weighted average service period of 3.4 years.