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Note 6 - Share-based Compensation and Employee Benefit Plan
 9 Months Ended
Sep. 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 September 30, 2016, 2,884,716 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.
 
Due to the resignation of the Company’s Chief Executive Officer from the Company and the Board of Directors and the resignation of the Chief Operating Officer, 65,000 shares of unvested restricted stock were cancelled and $227,000 of stock-based compensation expense was reversed in the third quarter. As a result, the Company recorded a net credit to stock-based compensation expense of $182,000 for the three months ended September 30, 2016, and net expense of $126,000 for the nine month period then ended. During the three and nine months ended September 30, 2015, the Company recorded $112,000 and $340,000 of total stock-based compensation, respectively.
 
During the nine months ended September 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 September 30, 2016 and changes therein during the periods indicated:
 
Three months ended September 30, 2016:
  
Number of Shares
Awarded
    
Weighted Average
Grant Date
Fair Value
  
Non-vested at June 30, 2016
     107,199     $ 14.16  
Granted
     -       -  
Vested
     (1,688 )     16.80  
Forfeited
     (65,500 )     14.87  
Non-vested at September 30, 2016
     40,011     $ 12.87  
                 
Three months ended September 30, 2015:
 
 
 
 
 
 
 
 
Non-vested at June 30, 2015
     81,698     $ 12.92  
Granted
     9,760       16.85  
Vested
     (225 )     17.25  
Forfeited
     (1,539 )     10.40  
Non-vested at September 30, 2015
     89,694     $ 13.37  
 
The following is a summary of the status of the Company’s restricted shares as of September 30, 2015 and changes therein during the periods indicated:
 
Nine months ended September 30, 2016:
  
Number of Shares
Awarded
    
Weighted Average
Grant Date
Fair Value
  
Non-vested at December 31, 2015
     55,854     $ 12.83  
Granted
     58,084       15.25  
Vested
     (4,214 )     15.55  
Forfeited
     (69,713 )     14.66  
Non-vested at September 30, 2016
     40,011     $ 12.87  
                 
Nine months ended September 30, 2015:
 
 
 
 
 
 
 
 
Non-vested at December 31, 2014
     79,208     $ 12.79  
Granted
     12,700       16.85  
Vested
     (675 )     17.25  
Forfeited
     (1,539 )     10.40  
Non-vested at September 30, 2015
     89,694     $ 13.37  
 
Expected future stock award expense related to the non-vested restricted awards as of September 30, 2016, is $505,000, which is expected to be recognized over an average period of 3.14 years.
 
The Company had no outstanding stock options at September 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 nine months ended September 30, 2016, compensation expense under the 401K aggregated $39,000 and $120,000, respectively. During the three and nine months ended September 30, 2015, compensation expense under the 401K aggregated $35,000 and $112,000, respectively.