Note 13 - Stock Compensation Plans

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note

13.

STOCK COMPENSATION PLANS

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 Stock Incentive Plan expired on

August 30, 2010.

Accordingly,

no

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

5,

2019,

the remaining

19,200

stock options outstanding under the Stock Incentive Plan expired and were forfeited. There was no compensation expense related to options under the Stock Incentive Plan recorded in each of the years ended

December 31, 2019 and 

2018

. 

The following table summarizes the changes in the status of FNCB

’s Stock Incentive Plan:

	For the Years Ended December 31,
	2019					2018
				Weighted				Weighted
				Average				Average
				Exercise				Exercise
	Shares			Price		Shares		Price
Stock options outstanding at the beginning of the year		19,200		$	10.81		19,200	$	10.81
Granted		-			-		-		-
Exercised		-			-		-		-
Forfeited		(19,200	)	$	10.81		-		-
Stock options outstanding at the end of the year		-		$	-		19,200	$	10.81
Options exercisable at year end		-		$	-		19,200	$	10.81
Weighted average fair value of options granted during the year				$	-			$	-
Stock-based compensation expense				$	-			$	-

At

December 31, 

2018

, the exercisable options had

no

total intrinsic value and there was

no

unrecognized compensation expense.  

FNCB has a Long-Term Incentive Compensation Plan (“LTIP”) for directors, executive officers 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. The Board of Directors

granted awards, comprised solely of shares of restricted stock, to executives and certain key employees under the terms of the LTIP of

57,684

shares in

2019

 and

57,829

 shares in

2018.

The following table summarizes the activity related to FNCB

’s unvested restricted stock awards during the years ended

December 31, 2019 and 2018.

	For the Years Ended December 31,
	2019					2018
				Weighted-					Weighted-
				Average					Average
	Restricted			Grant Date		Restricted			Grant Date
	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		(6,678	)		7.61		(2,898	)		7.25
Vestings		(37,558	)		6.80		(46,358	)		5.93
Unvested restricted stock awards at December 31,		128,150		$	7.76		114,702		$	7.50

For the years ended

December 31, 2019 and 

2018

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

255

 thousand in

2019

 and 

$279

 thousand in

2018.

Total unrecognized compensation expense related to unvested restricted stock awards at

December 31, 2019 and 

2018

 was

$809

 thousand and 

$675

 thousand, respectively.

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

3.7

 years.

On

July 1, 2019,

1,956

shares of FNCB's common stock were granted under the LTIP to each of FNCB Bank's

ten

non-employee directors, or

19,560

shares in the aggregate.  The shares of common stock immediately vested to each director upon grant, and the fair value of the shares on the grant date was

$7.67

per share. Directors fees totaling

$150

thousand were recognized as part of this grant and included in director fees in the consolidated statements of income for

December 31, 2019. 

 At

December 31, 2019,

there were

869,726

 shares of common stock available for award under the LTIP.