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Note 6 - Share-based Compensation and Employee Benefit Plan
 6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Note
6
: Share-Based Compensation
and Employee Benefit Plan
 
The Company maintains the Patriot National Bancorp, Inc. 2012 Stock Plan (the “Plan”) to provide an incentive to directors and employees of the Company. Grants under the Plan may take the form of stock options, restricted stock and phantom stock units. Up to three million shares of the Company’s common stock and one million phantom stock units may be issued under the Plan, subject to certain limitations. As of June 30, 2016, 2,819,216 shares of common stock and one million phantom stock units are available for issuance under the Plan.
 
Restricted stock grants are available to directors and employees and generally vest in annual installments over a three, four or five year period from the date of grant, as determined by the Compensation Committee of the Company’s Board of Directors. Vesting may be accelerated under certain circumstances. The Company expenses the grant date fair value of all share-based compensation over the requisite vesting periods on a prorated straight-line basis. During the three and six months ended June 30, 2016, the Company recorded $0.2 million and $0.3 million of total stock-based compensation, respectively. During the three and six months ended June 30, 2015, the Company recorded $0.1 million and $0.2 million of total stock-based compensation, respectively.
 
During the six months ended June 30, 2016, the Company issued 5,884 shares of restricted stock to directors and 52,200 shares of restricted stock to employees under the 2012 Stock Plan. 
 
The following is a summary of the status of the Company’s restricted shares as of June 30, 2016, and changes therein during periods indicated.
 
 
Three months ended June 30, 2016:
 
 
Number of Shares Awarded
 
 
  
Weighted Average
Grant Date Fair
Value
  
Non-vested at March 31, 2016
     113,938     $ 14.06  
Granted
     -       -  
Vested
     (2,526 )     14.72  
Forfeited
     (4,213 )     11.31  
Non-vested at June 30, 2016
     107,199     $ 14.16  
                 
Six months ended June 30, 2016:
 
 
 
 
 
 
 
 
Non-vested at December 31, 2015
     55,854     $ 12.83  
Granted
     58,084       15.25  
Vested
     (2,526 )     14.72  
Forfeited
     (4,213 )     11.31  
Non-vested at June 30, 2016
     107,199     $ 14.16  
 
 
PATRIOT NATIONAL BANCORP
, INC. AND SUBSIDIARY
Notes to consolidated financial statements (Unaudited)
 
The following is a summary of the status of the Company’s restricted shares as of June 30, 2015, and changes therein during periods indicated.
 
Three months ended June 30, 2015:
  
Number of Shares
Awarded
  
 
 
Weighted Average
Grant Date Fair
Value
 
Non-vested at March 31, 2015
     81,923     $ 12.93  
Granted
     -       -  
Vested
     (225 )     17.25  
Non-vested at June 30, 2015
     81,698     $ 12.92  
                 
Six months ended June 30, 2015:
 
 
 
 
 
 
 
 
Non-vested at December 31, 2014
     79,208     $ 12.79  
Granted
     2,940       17.00  
Vested
     (450 )     17.25  
Non-vested at June 30, 2015
     81,698     $ 12.92  
 
Expected future stock award expense related to the non-vested restricted awards as of June 30, 2016, is $1.3 million, which is expected to be recognized over an average period of 2.56 years. 
 
The Company had no outstanding stock options at June 30, 2016.
 
The Company offers a 401K retirement plan (the “401K”), which provides for tax-deferred salary deductions for eligible employees. Employees may choose to make voluntary contributions to the 401K, limited to an annual maximum amount as set forth periodically by the Internal Revenue Service. The Company matches 50% of such contributions, up to a maximum of six percent. During the three and six months ended June 30, 2016, compensation expense under the Plan aggregated $0.04 million and $0.08 million, respectively. During the three and six months ended June 30, 2015, compensation expense under the Plan aggregated $0.03 million and $0.09 million, respectively.