STOCK COMPENSATION PLANS

12 Months Ended

Dec. 31, 2023

NOTE 9 – STOCK COMPENSATION PLANS

On December 9, 2015, the Company’s stockholders approved the 2015 Equity Compensation Plan, or the 2015 Plan, that replaced the 2005 Equity Compensation Plan, or the 2005 Plan, which expired on May 24, 2015. The 2015 Plan provides that grants may be in any of the following forms: incentive stock options, nonqualified stock options, stock units, stock awards, dividend equivalents and other stock-based awards. The 2015 Plan is administered and interpreted by the Compensation Committee of the Board of Directors, or the Committee. The Committee has the authority to determine the individuals to whom grants will be made under the 2015 Plan, determine the type, size and terms of the grants, determine the time when grants will be made and the duration of any applicable exercise or restriction period (subject to the limitations of the 2015 Plan) and deal with any other matters arising under the 2015 Plan. The Committee presently consists of three directors, each of whom is a non-employee director of the Company. All of the employees of the Company and its subsidiaries are eligible for grants under the 2015 Plan. Non-employee directors of the Company are also eligible to receive grants under the 2015 Plan. The Company accounts for stock options issued after January 1, 2006 under FASB ASC Topic 718.

Compensation expenses for restricted stock awards were $254,000, $152,000 and $193,000 in 2023, 2022 and 2021, respectively. Costs were determined based on the fair value on the dates of the awards and those costs were charged to income over the service periods associated with the awards. As of December 31, 2023, there was $97,000 of unrecognized expense related to non-vested awards of restricted shares granted under the 2015 Plan.

There was no stock compensation cost capitalized as part of an asset.

The following summary reflects changes in the shares of Class A Non-Voting Stock under option:

	2023 Shares	2023 Weighted Average Exercise Price		2022 Shares		2022 Weighted Average Exercise Price		2021 Shares		2021 Weighted Average Exercise Price
Plan options
Outstanding at beginning of year	6,750	$	21.86		83,000	$	21.65		116,347	$	20.90
Granted	—		—		—		—		—		—
Exercised	(6,750)		21.86		(76,250)		21.63		(33,347)		19.04
Expired	—		—		—		—		—		—
Outstanding at end of year	—	$	—		6,750	$	21.86		83,000	$	21.65

Options exercisable at year end	—	$	—		6,750	$	21.86		83,000	$	21.65

The total intrinsic value of options exercised during 2023, 2022 and 2021 were $137,000, $2,226,000 and $736,000, respectively. During 2023, we received $148,000 in cash from the exercise of options, with a $410,000 tax benefit realized for those options.

The following table summarizes information about employee and director stock options outstanding and exercisable at December 31, 2023:

Options Outstanding and Exercisable
Range of Exercise Price		Shares Outstanding at December 31, 2023	Weighted Average Remaining Life	Weighted Average Exercise Price		Aggregate Intrinsic Value
$	00.00	0	0 Years	$	00.00	$	0

As of December 31, 2023, there were no outstanding option shares.

The following summary reflects changes in the shares of Class A Non-Voting Stock Restricted Stock Awards (RSA):

	2023 Shares			2023 Weighted Average Grant Date Fair Value		2022 Shares			2022 Weighted Average Grant Date Fair Value		2021 Shares			2021 Weighted Average Exercise Price
Plan RSA’s
Outstanding at beginning of year		5,000		$	45.58		5,000		$	40.11		5,000		$	35.01
Granted		5,000			54.88		5,000			45.58		5,000			40.11
Vested/Released		(5,000	)		45.58		(5,000	)		40.11		(5,000	)		35.01
Cancelled		—			—		—			—		—			—
Unvested Outstanding at end of year		5,000		$	54.88		5,000		$	45.58		5,000		$	40.11

Stock Options

No options were granted in 2023, 2022 or 2021.

Shares of Class A Non-Voting Stock have been reserved for future issuance under the 2015 Plan.

Stock Awards

On May 9, 2023, 5,000 shares of Class A Non-Voting Common Stock, or Class A Non-Voting Stock, were granted as restricted stock awards. The fair value per share was $54.88, the closing price of the Class A Non-Voting Stock as recorded on the Nasdaq Global Select Market on May 9, 2023. Prior to their release date, these restricted stock awards may be subject to forfeiture in the event of the recipient’s termination of service.

On May 3, 2022, 5,000 shares of Class A Non-Voting Stock, were granted as restricted stock awards. The fair value per share was $45.58, the closing price of the Class A Non-Voting Stock as recorded on the Nasdaq Global Select Market on May 3, 2022. These shares were fully vested and released one year after the grant date.

On May 4, 2021, 5,000 shares of Class A Non-Voting Stock were granted as restricted stock awards. The fair value per share was $40.11, the closing price of the Class A Non-Voting Stock as recorded on the Nasdaq Global Select Market on May 4, 2021. These shares were fully vested and released one year after the grant date.

As of December 31, 2023, there was $97,000 of total unrecognized expense related to non-vested awards of restricted shares awarded under the 2015 Plan. The cost will be recognized over 0.35 years, the remaining vesting period for the restricted stock awards.

The total intrinsic value of awards released during 2023 was approximately $272,600.