Note 14 - Stock Compensation Plans

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

14. Stock Compensation Plans

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, of which

6,783

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 Plans. 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.

During

2020

 and

2019,

 the Corporation granted restricted stock awards of

16,000

and

17,950

shares, respectively, with a face value of

$392,000

and

$558,000,

respectively, based on the weighted-average grant date stock prices of

$24.48

 and

$31.10,

respectively. These restricted stock awards are

100%

vested on the

third

anniversary of the date of grant, except in the event of death, disability or retirement. Nonvested restricted stock is

not

included in common shares outstanding on the consolidated balance sheets. 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. There were

no

stock options granted during

2020

 or

2019.

For the year ended

December 

31,

2020

 and

2019

 the Corporation recognized

$459,000

and

$368,000,

respectively, in stock compensation expense.

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

December 

31,

2020,

and changes during the period then ended is presented below:

	Shares			Weighted-Average Grant-date Fair Value
Nonvested at January 1, 2020		44,450		$	31.11
Granted		16,000			24.48
Vested		(12,500	)		31.37
Forfeited		—			—
Nonvested as of December 31, 2020		47,950		$	28.83

As of

December 

31,

2020,

there was

$884,000

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

three

years.