Note 7 - Stock Compensation Plan

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7. Stock Compensation Plan

In

April 2014,

the Corporation adopted the

2014

Stock Incentive Plan (the

2014

Plan), which is shareholder approved and permits the grant of restricted stock awards and options to its directors, officers and employees for up to

176,866

shares of common stock. As of 

September 30, 2018,

52,533

shares of restricted stock and

88,433

stock options remain available for issuance under the plan.

Incentive stock options, non-incentive or compensatory stock options and share awards

may

be granted under the Plan. The exercise price of each option shall at least equal the market price of a share of common stock on the date of grant and have a contractual term of

ten

years. Options shall vest and become exercisable at the rate, to the extent and subject to such limitations as

may

be specified by the Corporation. Compensation cost related to share-based payment transactions must be recognized in the financial statements with measurement based upon the fair value of the equity instruments issued.

At

September 30, 2018

there are

no

options that were granted or outstanding under the Plan.

A summary of the status of the Corporation’s nonvested restricted stock awards as of

September 30, 2018,

and changes during the period then ended is presented below:

			Weighted-Average
	Shares		Grant-date Fair Value
Nonvested at January 1, 2018		33,400	$	27.70
Granted		-		-
Vested		-		-
Forfeited		(2,500)		27.17
Nonvested as of September 30, 2018		30,900	$	27.74

For the

three

and

nine

month periods ended

September 30, 2018,

the Corporation recognized stock compensation expense o

f

$37,000

and

$187,000,

respectively, compared t

o

$55,000

and

$164,000,

respectively, for the same period in

2017.

As of

September 30, 2018,

there was

$411,000

of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over the next

three

years. It is the Corporation’s policy to issue shares on the vesting date for restricted stock awards. Unvested restricted stock awards do

not

receive dividends declared by the Corporation.