Note 6 - Stock Compensation Plan

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

6. Stock Compensation Plan

In February 2021, the Corporation adopted the 2021 Stock Incentive Plan (the 2021 Plan), which is shareholder approved and permits the grant of restricted stock awards and options to its directors, officers and employees for up to 204,091 shares of common stock.  As of September 30, 2022, 192,591 shares remain available for issuance under the 2021 Plan.

In addition, in February 2014, the Corporation adopted the 2014 Stock Incentive Plan (the 2014 Plan, and together with the 2021 Plan, the Plans), 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, 2022, 783 shares of restricted stock and 88,433 stock options remain available for issuance under the 2014 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.

At September 30, 2022, there were no options that were granted or outstanding under the Plans.

A summary of the status of the Corporation’s nonvested restricted stock awards as of September 30, 2022, and changes during the period then ended is presented below:

	Shares			Weighted-Average Grant-date Fair Value
Nonvested at January 1, 2022		52,200		$	28.32
Granted		—			—
Vested		—			—
Forfeited		(1,250	)		28.92
Nonvested as of September 30, 2022		50,950		$	28.31

For the three and nine month periods ended September 30, 2022, the Corporation recognized stock compensation expense of $117,000 and $338,000, respectively, compared to $112,000 and $336,000, respectively, for the same periods in 2021.  As of September 30, 2022, there was $575,000 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plans. That cost is expected to be recognized over the next 2.25 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.