Note 6 - Share-based Compensation

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 6 – 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,
	2024		2023
Stock options and SARs	$	268	$	309
Restricted stock		654		590
Performance shares		93		181
Total share-based compensation expense	$	1,015	$	1,080

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 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, 2024 follows:

						Weighted Average		Aggregate
	No. of			Weighted Average		Remaining Life		Intrinsic Value
	Shares			Exercise Price		(in years)		(in thousands)
Outstanding, January 1, 2024		953,176		$	14.73		2.80	$	1,718
Granted(1)		167,300			13.84
Exercised		(53,042	)		10.23
Lapsed or cancelled		(136,527	)		17.18
Outstanding, March 31, 2024		930,907			14.47		3.41		3,311
Exercisable, March 31, 2024		407,366			17.36		2.20		1,009

⁽¹⁾ The weighted average grant date fair value of stock options granted was $13.84 per share.

As of March 31, 2024, the Company had $1.2 million in unrecognized compensation cost related to nonvested stock options to be recognized over the remaining weighted average vesting period of 1.4 years.

A summary of stock-settled SARs transactions during the three months ended March 31, 2024 follows:

						Weighted Average		Aggregate
	No. of			Weighted Average		Remaining Life		Intrinsic Value
	Shares			Exercise Price		(in years)		(in thousands)
Outstanding, January 1, 2024		292,508		$	14.35		2.07	$	506
Granted(1)		79,128			13.84
Exercised		(17,920	)		8.48
Lapsed or cancelled		(54,064	)		21.14
Outstanding, March 31, 2024		299,652			13.34		2.89		1,159
Exercisable, March 31, 2024		149,492			13.96		1.41		587

⁽¹⁾ The weighted average grant date fair value of SARs granted was $13.84 per share.

As of March 31, 2024, 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 1.5 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, 2024 follows:

				Weighted Average
	No. of			Grant Date
	Shares			Fair Value
Outstanding, January 1, 2024		428,366		$	18.14
Granted		115,804			13.84
Vested		(13,039	)		25.78
Forfeited		-			-
Outstanding, March 31, 2024		531,131			17.01

As of March 31, 2024, the Company had $4.8 million of unrecognized compensation cost related to nonvested restricted stock grants expected to be recognized over the remaining weighted average vesting period of 1.8 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, 2024 follows:

				Weighted Average
	No. of			Grant Date
	Shares			Fair Value
Outstanding, January 1, 2024		283,521		$	18.13
Granted		-			-
Vested		(14,068	)		17.77
Forfeited		-			-
Outstanding, March 31, 2024		269,453			18.15

As of March 31, 2024, the Company had $1.0 million of unrecognized compensation cost related to nonvested performance share grants expected to be recognized over the remaining weighted average service period of 2.4 years.