Note

. Stock Compensation Plans

FNCB has a Long-Term Incentive Compensation Plan (“LTIP”) for directors, executives and key employees. The LTIP authorizes up to

1,200,000

shares of common stock for issuance and provides the Board of Directors with the authority to offer several different types of long-term incentives, including stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares. During the

three

months ended

March 31, 2019

and

2018,

the Board of Directors granted

57,684

and

57,829

shares of restricted stock, respectively, under the LTIP. At

March 31, 2019,

there were

865,004

shares of common stock available for award under the LTIP. For the

three

months ended

March 31, 2019

and

2018,

stock-based compensation expense, which is included in salaries and benefits expense in the consolidated statements of income, totaled

$67

thousand and

$72

thousand, respectively. Total unrecognized compensation expense related to unvested restricted stock awards was

$1.1

million and

$883

thousand at

March 31, 2019

and

2018,

respectively. Unrecognized compensation expense related to unvested shares of restricted stock is expected to be recognized over a weighted-average period of

4.4

years.

The following table summarizes the activity related to FNCB’s unvested restricted stock awards during the

three

months ended

March 31, 2019

and

2018:

	Three Months Ended March 31,
	2019				2018
			Weighted-					Weighted-
			Average					Average
	Restricted		Grant Date		Restricted			Grant Date
(dollars in thousands)	Shares		Fair Value		Shares			Fair Value
Unvested restricted stock awards at January 1,		114,702	$	7.50		106,129		$	6.23
Awards granted		57,684		7.64		57,829			8.54
Forfeitures		-		-		(1,279	)		6.88
Vestings		-		-		-			-
Unvested restricted stock awards at March 31,		172,386	$	7.55		162,679		$	7.05

FNCB had an Employee Stock Incentive Plan (the “Stock Incentive Plan”), under which options were granted to key officers and other employees of FNCB. The aggregate number of shares authorized to be issued upon exercise of the options under the Stock Incentive Plan could

not

exceed

1,100,000

shares. Options and rights granted under the Stock Incentive Plan became exercisable

six

months after the date the options were awarded and expire

ten

years after the award date. Upon exercise, the shares are issued from FNCB’s authorized but unissued stock. The Stock Incentive Plan expired on

August 30, 2010.

Accordingly,

further grants have been, or will be, made under the Stock Incentive Plan.

compensation expense related to options under the Stock Incentive Plan was required to be recorded in the

three

months ended

March 31, 2019

and

2018.

On January

2019,

the last

19,200

stock options outstanding under the Stock Incentive Plan expired and were forfeited.