Note 13 - Stock Option Plan

12 Months Ended

Dec. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Note 13 - Stock Option Plan

QNB has stock option plans (the Plans) administered by a committee which consists of three or more members of QNB’s Board of Directors. The Plans provide for the granting of either (i) Non-Qualified Stock Options (NQSOs) or (ii) Incentive Stock Options (ISOs). The exercise price of an option, as defined by the Plans, is the fair market value of QNB’s common stock at the date of grant. The Plans provide for the exercise either in cash or in securities of the Company or in any combination thereof.

The 2015 Plan, which expires March 15, 2025, authorizes the issuance of 300,000 shares. The time period by which any option is exercisable under this Plan is determined by the Committee but shall not commence before the expiration of six months after the date of grant or continue beyond the expiration of five years after the date of grant. There were 148,200 options granted, 13,425 options forfeited, 20,825 options exercised and 113,950 options outstanding under the 2015 Plan as of December 31, 2021.

As of December 31, 2021, there was approximately $75,000 of unrecognized compensation cost related to unvested stock option awards granted. That cost is expected to be recognized over the next 21 months.

Stock option activity during 2021, 2020, and 2019 was as follows:

	Number of options			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at December 31, 2018		95,075			35.11
Exercised		(14,925	)		27.16
Forfeited		(1,500	)		37.20
Granted		24,700			38.15
Outstanding at December 31, 2019		103,350			36.96
Exercised		(9,550	)		29.39
Forfeited		(2,250	)		39.86
Granted		25,000			36.50
Outstanding at December 31, 2020		116,550			37.42
Exercised		(19,025	)		30.97
Forfeited		(8,575	)		35.27
Granted		25,000			32.50
Outstanding at December 31, 2021		113,950		$	37.58		2.20	$	84
Exercisable at December 31, 2021		43,125		$	40.72		0.65	$	—

As of December 31, 2021, outstanding stock options consist of the following:

	Options outstanding		Exercise price		Remaining life (in years)		Options exercisable		Exercise price
		24,000	$	32.50		4.13		—	$	—
		24,200		36.50		3.13		—		—
		20,700		37.60		0.13		20,700		37.60
		22,625		38.15		2.13		—		—
		22,425		43.60		1.14		22,425		43.60
Outstanding at December 31, 2021		113,950	$	37.58		2.20		43,125	$	40.72

The intrinsic value related to total stock options exercised during 2021, 2020, and 2019 are as follows:

		2021				2020				2019
Intrinsic value of stock options exercised		$	31			$	81			$	153