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Note 9 - Share-based Compensation and Employee Benefit Plan | 9 Months Ended
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Sep. 30, 2020
Notes to Financial Statements |
Share-based Payment Arrangement [Text Block] | Note 9. 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 by the grant of restricted stock awards (“RSA”), options, or phantom stock units. Since 2013, the Company's practice has been to grant RSAs. As of September 30, 2020 and December 31, 2019, there were no options or phantom stock units outstanding, or that have been exercised during the period then ended. The Plan provides for the issuance of up to 3,000,000 shares of the Company's common stock subject to certain limitations. As of September 30, 2020, 2,850,139 shares of stock are available for issuance under the Plan. In accordance with the terms of the Plan, the vesting of RSAs and options may be accelerated at the discretion of the Compensation Committee of the Board of Directors. The Compensation Committee sets the terms and conditions applicable to the vesting of RSAs and stock option grants. RSAs granted to directors and employees generally vest in quarterly or annual installments over a three , four or five year period from the date of grant. The following is a summary of the status of the Company's restricted shares and changes for the three and nine months ended September 30, 2020 and 2019:
Three months ended September 30, 2020: |  | Number of Shares Awarded |  |  | Weighted Average Grant Date Fair Value |
Unvested at June 30, 2020 |  |  | 26,597 |  |  | $ | 8.89 |
Vested |  |  | (1,200 | ) |  | $ | 17.41 |
Unvested at September 30, 2020 |  |  | 25,397 |  |  | $ | 8.49 |
Nine months ended September 30, 2020: |  |  |  |  |  |  |  |
Unvested at December 31, 2019 |  |  | 21,470 |  |  | $ | 12.91 |
Granted |  |  | 12,484 |  |  | $ | 6.12 |
Vested |  |  | (6,372 | ) |  | $ | 16.20 |
Forfeited |  |  | (2,185 | ) |  | $ | 15.92 |
Unvested at September 30, 2020 |  |  | 25,397 |  |  | $ | 8.49 |
Three months ended September 30, 2019: |  | Number of Shares Awarded |  |  | Weighted Average Grant Date Fair Value |
Unvested at June 30, 2019 |  |  | 29,529 |  |  | $ | 13.94 |
Vested |  |  | (2,392 | ) |  | $ | 17.11 |
Unvested at September 30, 2019 |  |  | 27,137 |  |  | $ | 13.66 |
Nine months ended September 30, 2019: |  |  |  |  |  |  |  |
Unvested at December 31, 2018 |  |  | 31,790 |  |  | $ | 14.06 |
Granted |  |  | 9,675 |  |  | $ | 15.52 |
Vested |  |  | (14,328 | ) |  | $ | 15.79 |
Unvested at September 30, 2019 |  |  | 27,137 |  |  | $ | 13.66 |
The Company recognizes compensation expense for all director and employee share-based compensation awards on a straight-line basis over the requisite service period, which is equal to the vesting schedule of each award, for each vesting portion of an award equal to its grant date fair value. For the three and nine months ended September 30, 2020, the Company recognized total share-based compensation expense of $42,000 and $123,000, respectively. The share-based compensation attributable to employees of Patriot amounted to $21,000 and $64,000, respectively. Included in share-based compensation expense were $21,000 and $59,000 attributable to Patriot's external directors, who received total compensation of $87,000 and $342,000 for each of those periods, respectively, which amounts are included in other operating expenses in the consolidated statements of operations. For the three and nine months ended September 30, 2019, the Company recognized total share-based compensation expense of $59,000 and $162,000, respectively. The share-based compensation attributable to employees of Patriot amounted to $31,000 and $87,000, respectively. Included in share-based compensation expense were $28,000 and $75,000 attributable to Patriot's external directors, who received total compensation of $153,000 and $423,000 for each of those periods, respectively, which amounts are included in other operating expenses in the consolidated statements of operations. Unrecognized compensation expense attributable to the unvested restricted shares outstanding as of September 30, 2020 amounted to $226,000, which amount is expected to be recognized over the weighted average remaining life of the awards of 1.99 years. Dividends The Company has not paid any dividends during 2020 and has temporarily suspended dividend payments pending resolution of the economic uncertainties associated with the Coronavirus pandemic. For the three and nine months ended September 30, 2019, the Company paid cash dividends of $.01 per share of common stock, or an aggregate of $39,000 and $116,000, respectively. Retirement Plan 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 of an employee's annual compensation. During the three and nine months ended September 30, 2020, compensation expense under the 401K aggregated $48,000 and $199,000, respectively. During the three and nine months ended September 30, 2019 compensation expense under the 401K aggregated $53,000 and $195,000, respectively.

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