Note 9 - Benefit Plans

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note

9:

Benefit Plans

The Company has stock-based employee compensation plans, which are described in the Company’s

2019

Annual Report. The following tables below summarize transactions under the Company’s equity plans for the

three

months ended

March 31, 2020:

Stock Options

All remaining stock options from prior year issuances were exercised in

2019

leaving

no

amounts outstanding as of

March 31, 2020.

The total intrinsic value of stock options exercised for the

three

months ended

March 31, 2020

and

2019

was

$0

and

$168,225,

respectively. The total intrinsic value of outstanding stock options (including exercisable) was

$0

and

$130,200

at

March 31, 2020

and

2019,

respectively.

Restricted Stock	Number of Shares			Weighted Average Grant-Date Fair Value
Balance of shares non-vested as of January 1, 2020		24,378		$	22.75
Granted		14,366			23.50
Vested		(10,964	)		22.23
Forfeited		-			-
Balance of shares non-vested as of March 31, 2020		27,780		$	23.34

In

February 2020,

the Company granted

5,579

shares of restricted stock to directors pursuant to the

2015

Equity Plan that have a cliff vesting at the end of

one

year and thus, expensed over that same period. These shares had a grant date market price of

$23.50

per share. The total amount of expense for restricted stock grants to directors (including all previous years grants) during the

three

months ended

March 31, 2020

and

2019

was

$36,869

and

$28,857,

respectively.

For the

three

months ended

March 31, 2020

and

2019,

the Company granted

8,787

and

9,933

shares, respectively, of restricted stock to officers that have a cliff vesting at the end of

three

years. The expense is being recognized over the applicable vesting period. The total amount of expense for restricted stock grants to officers (including all previous years grants) during the

three

months ended

March 31, 2020

and

2019

was

$47,471

and

$49,023,

respectively.

Restricted Stock Units	Performance Stock Units		Weighted Average Grant-Date Fair Value
Balance of shares non-vested as of January 1, 2020		-	$	-
Granted		43,700		15.62
Vested		-		-
Forfeited		-		-
Balance of shares non-vested as of March 31, 2020		43,700	$	15.62

On

March 19, 2020,

the Company granted restricted stock units representing

43,700

hypothetical shares of common stock to officers. There are

three

possible levels of incentive awards: threshold (

25%

); target (

50%

); and maximum (

100%

). The restricted stock units vest based on

two

financial performance factors over the period from

March 19, 2020

to

December 31, 2022 (

the “Performance Period”). The

two

performance measurements of the Company (and the weight given to each measurement) applicable to each award level are as follows: (i) Earnings Per Share (

50%

) and (ii) Return on Average Assets (

50%

). In determining compensation expense, the fair value of the restricted stock unit awards was determined based on the closing price of the Company’s common stock on the date of grant, which was

$15.62

per share. The expense is being recognized over the applicable vesting period. Due to the fact that the measurements cannot be determined at the time of the grant, the Company currently estimates that the most likely outcome is the achievement between the target and maximum levels. If during the Performance Period, additional information becomes available to lead the Company to believe a different level will be achieved for the Performance Period, the Company will reassess the number of units that will vest for the grant and adjust its compensation expense accordingly on a prospective basis. The total amount of expense for restricted stock units during the

three

months ended

March 31, 2020

and

2019

was

$0

and

$107,882,

respectively.

Total stock-based compensation expense recognized for the

three

months ended

March 31, 2020

and

2019

was

$84,340

and

$185,762,

respectively. As of

March 

31,

2020,

there was

$813,658

of unrecognized compensation expense related to nonvested restricted stock awards, which will be recognized over the remaining vesting period.