Note 3 - Stock-based Compensation

6 Months Ended

Jun. 30, 2022

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, 2022 and 2021.

There was no stock option activity during the three or six months ended June 30, 2022.

The following table presents the activity during the six months ended June 30, 2022, related to awards of restricted stock:

				Weighted-
				average
				Grant Date Fair
	Units			Value Per Unit
Nonvested at January 1, 2022		76,933		$	23.01
Granted		25,414			24.80
Vested		(25,263	)		20.95
Forfeited		(13,438	)		-
Nonvested at June 30, 2022		63,646		$	24.34
Expected to vest as of June 30, 2022		52,068		$	24.19

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

Share-based compensation (recovery) expense of ($162,000) and $97,000 was recognized for the three-month periods ended June 30, 2022, and 2021, respectively. Share-based compensation (recovery) expense of ($44,000) and $97,000 was recognized for the six-month periods ended June 30, 2022, and 2021, respectively. Expense recovery is the result of a decrease in the market valuation of the plans. Vesting of shares under the plan is contingent on a combination of service period and a market condition tied to the total shareholder return on the Company’s stock. A change in market conditions leads to adjustments to the probability of the market condition achievement, which results in changes in the liability and the 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 $340,000 and $594,000 on June 30, 2022, and 2021, 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, 2022 totals $543,000, of which $147,000 is estimated for the rest of 2022, $250,000 for 2023, $129,000 for 2024, and $17,000 for 2025.