Note E - Stock-based Compensation

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

NOTE E: STOCK-BASED COMPENSATION

The Company maintains a stock incentive plan (the “Plan”) under which incentive and nonqualified stock options and other stock awards may be granted. Under the Plan, 3,000,000 shares are reserved for the issuance of stock awards to directors, officers, key employees, and others. The stock option exercise price and the restricted stock value under the Plan shall not be less than 85% of the fair market value of the Company’s common stock on the date the award is granted. The fair market value is determined by the closing price of the Company’s common stock, on its primary exchange, on the same date that the option or award is granted.

The Company did not grant any shares of common stock during the first three months of 2024.

The total grant date fair value of stock vested during the first three months of 2024 was approximately $450,000. The total pre-tax stock-based compensation expense, recognized in salaries, wages and benefits during the first three months of 2024, was approximately $192,000 and includes approximately $0 recognized as a result of the grant of shares to certain non-employee directors. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $0.01 during the first three months of 2024. As of March 31, 2024, the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately $1,942,000, which is being amortized on a straight-line basis over the remaining vesting period. As a result, the Company expects to recognize approximately $536,000 in additional compensation expense related to unvested stock awards during the remainder of 2024 and to recognize approximately $777,000, $493,000, and $136,000 in additional compensation expense related to unvested stock awards during the years 2025, 2026, and 2027, respectively.

During the first three months of 2023, the Company granted 28,313 shares of common stock to key employees. Those stock awards had a grant date fair value of $28.30 per share, based on the closing price of the Company’s stock on the date of grant, and vest in 25% increments over four years, beginning one year from the anniversary date of the grant.

The total grant date fair value of stock vested during the first three months of 2023 was approximately $206,000. The total pre-tax stock-based compensation expense, recognized in salaries, wages and benefits during the first three months of 2023, was approximately $208,000 and includes approximately $0 recognized as a result of the grant of shares to certain non-employee directors. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $0.01 during the first three months of 2023. As of March 31, 2023, the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately $2,999,000, which is being amortized on a straight-line basis over the remaining vesting period.

A summary of the status of the Company’s non-vested restricted stock as of March 31, 2024, and changes during the three months ended March 31, 2024, is as follows:

	Restricted Stock
	Number of Shares			Weighted- Average Grant Date Fair Value
Non-vested at January 1, 2024		198,859		$	14.07
Granted		-			-
Canceled/forfeited/expired		-			-
Vested		(15,846	)		28.40
Non-vested at March 31, 2024		183,013		$	12.83