Note 3 - Stock-based Compensation

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

NOTE 3 - STOCK-BASED COMPENSATION

The Company had no nonvested stock options outstanding as of June 30, 2020 and 2019.

Stock option activity during the six months ended June 30, 2020 is as follows:

				Weighted-
				average
				Exercise Price
	Shares			Per Share
Outstanding, January 1, 2020		14,500		$	8.78
Exercised		(1,000	)		8.78
Outstanding, June 30, 2020		13,500		$	8.78
Exercisable, June 30, 2020		13,500		$	8.78

The following table presents the activity during the six months ended June 30, 2020 related to awards of restricted stock:

			Weighted-
			average
			Grant Date Fair
	Units		Value Per Unit
Nonvested at January 1, 2020		61,040	$	21.73
Granted		23,648		26.09
Nonvested at June 30, 2020		84,688	$	22.94
Expected to vest as of June 30, 2020		1,000	$	22.65

The Company recognizes restricted stock forfeitures in the period they occur.

Share-based compensation expense of $294,000 and $0 was recognized for the three-month periods ended June 30, 2020 and 2019, respectively. Share-based compensation expense of ($113,000) and $90,000 was recognized for the six-month periods ended June 30, 2020 and 2019, respectively. The expense recorded for the six-month period ended June 30, 2020 is the result of the decrease in the market valuations of the plans for December 31, 2019. Vesting of shares under the plan is contingent on a combination of service period and a performance condition tied to the total shareholder return on the Company’s stock. Due to the change in market conditions during the first quarter of 2020, there was a significant decrease in the probability of the achievement of the performance condition which resulted in a decrease in the liability related to the plan and a reversal of compensation expense. Since the shares of restricted stock are historically paid out at the vesting date in a combination of shares and cash, the Company has recorded a liability related to this plan which totals $581,000 and $236,000 at June 30, 2020 and 2019, respectively. When the shares vest, the amount distributed in shares is transferred to common stock and the remainder is distributed in cash.

Total unrecognized stock compensation cost related to nonvested share-based compensation on restricted stock as of June 30, 2020 totals $374,000, of which $124,000 is estimated for the rest of 2020, $180,000 for 2021, $63,000 for 2022, and $7,000 for 2023.