v3.26.1
Note 5 - Stock-based Compensation
3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

NOTE 5 - STOCK-BASED COMPENSATION

 

On September 7, 2023, the Company adopted the ECB Bancorp, Inc. 2023 Equity Incentive Plan ("2023 Equity Plan”). The 2023 Equity Plan authorizes 1,248,133 shares of common stock for equity based compensation awards including restricted stock awards, restricted stock units and stock options, including incentive stock options.

 

The following table summarizes the Company's stock option activities for the periods indicated:

 

  

Three months ended March 31, 2026

 
  

Outstanding and exercisable

  

Non-vested

 
      

Weighted-Average

      

Weighted-Average

 
  

Shares

  

Exercise Price

  

Shares

  

Exercise Price

 

Balance at beginning of period

  288,092  $10.43   440,885  $10.45 

Granted

            

Vested

            

Exercised

            

Forfeited or expired

            

Balance at end of period

  288,092  $10.43   440,885  $10.45 

 

The restricted stock awards are measured based on grant-date fair value, which reflects the closing price of our stock on the date of grant. All of the restricted stock awards which have been granted to date vest over five years in equal portions beginning on the first anniversary date of the restricted stock award, except the restricted stock awards granted in 2025 which vest in one year. The following table represents information regarding non-vested restricted stock award activities for the periods indicated:

 

  

Three Months Ended

 
  

March 31, 2026

 
      

Weighted-Average

 
      

Grant Date

 
      

Fair Value

 
  

Number of Shares

  

Per Share

 

Balance at beginning of period

  178,526  $10.51 

Granted

      

Vested

      

Forfeited

      

Balance at end of period

  178,526  $10.51 

 

  

Three Months Ended

 
  

March 31, 2025

 
      

Weighted-Average

 
      

Grant Date

 
      

Fair Value

 
  

Number of Shares

  

Per Share

 

Balance at beginning of period

  245,766  $10.51 

Granted

      

Vested

      

Forfeited

      

Balance at end of period

  245,766  $10.51 

 

The following table represents the compensation expense and income tax benefits recognized for stock options and restricted stock awards for the periods indicated:

 

  

Three months ended

 
  

March 31, 2026

  

March 31, 2025

 
  

(in thousands)

 

Stock-based compensation expense

        

Stock options

 $156  $163 

Restricted stock awards, net of forfeitures

  157   159 

Total stock-based compensation expense

 $313  $322 

Related tax benefits recognized in earnings

 $67  $70 

 

The following table sets forth the total compensation cost related to non-vested awards not yet recognized and the weighted average period (in years) over which it is expected to be recognized as of the periods indicated:

 

  

March 31, 2026

  

December 31, 2025

 
      

Weighted average

      

Weighted average

 
  

Amount

  

period

  

Amount

  

period

 
  

(Dollars in thousands)

 

Stock options

 $1,612   2.56  $1,767   2.80 

Restricted stock awards

  1,592   2.55   1,749   2.80 

Total

 $3,204      $3,516