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Note 13 - Stock-based Compensation | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Compensation and Employee Benefit Plans [Text Block] |
13. | STOCK-BASED COMPENSATION
The Company maintains a stock incentive plan under which incentive and nonqualified stock options and other stock awards may be granted. On March 13, 2014, the Company’s Board of Directors adopted, and on May 29, 2014 our shareholders approved, the 2014 Amended and Restated Stock Option and Incentive Plan (the “Plan”) which amended and restated the Company’s 2006 Stock Option Plan. Under the Plan, 750,000 shares are reserved for the issuance of stock awards to directors, officers, key employees, and others. The stock option exercise price and the restricted stock purchase price under the 2014 Plan shall not be less than 85% of the fair market value of the Company’s common stock on the date the award is granted. The fair market value is determined by the closing price of the Company’s common stock, on its primary exchange, on the same date that the option or award is granted. In January 2020, the Company granted 7,000 shares of common stock to certain key employees. These restricted stock awards have a grant date fair value of $56.45 per share, based on the closing price of the Company’s stock on the date of grant, and vest on the four year anniversary date of the award. In March 2020, the Company granted 2,608 shares of common stock to non-employee directors. These stock awards have a grant date fair value of $30.75 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately. In April 2020, the Company granted 242 shares of common stock to a non-employee director. This stock award has a grant date fair value of $41.40 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately. In August 2020, the Company granted 40,000 restricted shares of common stock to the Company’s Chief Executive Officer. This restricted stock award has a grant date fair value of $35.37, based on the closing price of the Company’s stock on the date of grant, and will vest in increments of 5,000 shares each in 2022, 2023, 2024 and 2027 and 10,000 shares each in 2025 and 2026. In August 2020, the Company granted 13,332 shares of common stock to certain key employees. These restricted stock awards have a grant date fair value of $30.25 per share, based on the closing price of the Company’s stock on the date of grant, and vest on the four year anniversary date of the award. In April 2019, the Company granted 1,845 shares of common stock to non-employee directors. These stock awards have a grant date fair value of $48.94 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately. In May 2019, the Company granted 213 shares of common stock to a non-employee director. These stock awards have a grant date fair value of $47.06 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately. In December 2018, the Company granted 33,000 restricted shares of common stock to certain key employees. These restricted stock awards have a grant date fair value of $36.35 per share, based on the closing price of the Company’s stock on the date of grant, with one fourth of the award vesting each of the next four years on the anniversary date. In March 2018, the Company granted 1,932 shares of common stock to non-employee directors. These stock awards have a grant date fair value of $36.35 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately. During 2020 and 2019, there were no grants of stock options and there were no outstanding stock options at December 31, 2020 or December 31, 2019. At December 31, 2020, approximately 362,000 shares were available for granting future options or restricted stock. The grant date fair value of stock and stock options vested during 2020, 2019 and 2018 was approximately $759,000, $953,000 and $719,000, respectively. Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately $461,000 during 2020 and includes approximately $90,000 recognized as a result of the grant of 326 shares of stock to eight non-employee directors during the first quarter of 2020 and 242 shares of stock to one non-employee director during the second quarter of 2020. The Company recognized a total income tax benefit of approximately $100,000 related to stock-based compensation expense during 2020. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $0.06 during 2020. As of December 31, 2020, the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately $2,077,000 which is being amortized over the remaining vesting period. As a result, the Company expects to recognize the following approximate amounts of additional compensation expense related to unvested restricted stock awards during each of the years indicated:
2021 |  | $ | 342,000 |
2022 |  | $ | 375,000 |
2023 |  | $ | 310,000 |
2024 |  | $ | 297,000 |
2025 |  | $ | 354,000 |
2026 |  | $ | 288,000 |
2027 |  | $ | 111,000 |
Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately $912,000 during 2019 and included approximately $100,000 recognized as a result of the grant of 205 shares of stock to each non-employee director during the first quarter of 2019. The Company recognized a total income tax benefit of approximately $200,000 related to stock-based compensation expense during 2019. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $0.12 during 2019. Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately $732,000 during 2018 and included approximately $70,000 recognized as a result of the grant of 276 shares of stock to each non-employee director during the first quarter of 2018. The Company recognized a total income tax benefit of approximately $172,000 related to stock-based compensation expense during 2018. The recognition of stock-based compensation expense decreased diluted and basic earnings per common share by approximately $0.09 and $0.10, respectively, during 2018. Transactions in stock options under these plans are summarized as follows:
|  | Shares Under Option |  |  | Weighted- Average Exercise Price |
Outstanding—January 1, 2018: |  |  | 45,068 |  |  | $ | 10.79 |
Granted |  |  | - |  |  |  | - |
Exercised |  |  | (45,005 | ) |  |  | 10.79 |
Canceled |  |  | (63 | ) |  |  | 11.22 |
Outstanding—December 31, 2018: |  |  | - |  |  | $ | - |
Granted |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |
Canceled |  |  | - |  |  |  | - |
Outstanding—December 31, 2019: |  |  | - |  |  | $ | - |
Granted |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |
Canceled |  |  | - |  |  |  | - |
Outstanding—December 31, 2020: |  |  | - |  |  | $ | - |
Options exercisable—December 31, 2020: |  |  | - |  |  | $ | - |
There were no options granted during 2020, 2019, or 2018. The weighted-average grant-date fair value of options canceled, forfeited, or expired during 2018 was $6.34. The total intrinsic value of options exercised during 2018 were approximately $1,406,000. A summary of the status of the Company’s non-vested restricted stock as of December 31, 2020 and changes during the year ended December 31, 2020, is presented below:
|  | Restricted Stock |
|  | Number of Shares |  |  | Weighted- Average Grant Date Fair Value |
Nonvested—January 1, 2020 |  |  | 55,459 |  |  | $ | 24.35 |
Granted |  |  | 63,182 |  |  |  | 36.46 |
Canceled/forfeited/expired |  |  | (18,047 | ) |  |  | 38.25 |
Vested |  |  | (39,559 | ) |  |  | 19.18 |
Nonvested—December 31, 2020: |  |  | 61,035 |  |  | $ | 36.12 |
Cash received from option exercises totaled approximately $0, $0 and $485,000 during the years ended December 31, 2020, 2019 and 2018, respectively. The Company issued new shares upon option exercise.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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