Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION

v3.22.4
STOCK-BASED COMPENSATION
12 Months Ended
Dec. 31, 2022
STOCK-BASED COMPENSATION [Abstract]  
STOCK-BASED COMPENSATION
NOTE 13 – STOCK-BASED COMPENSATION

On May 5, 2015, the Company’s shareholders approved the Macatawa Bank Corporation Stock Incentive Plan of 2015 (the 2015 Plan).  The 2015 Plan provides for grant of up to 1,500,000 shares of Macatawa common stock in the form of stock options or restricted stock awards to employees and directors. There were 973,550 shares under the “2015 Plan” available for future issuance as of December 31, 2022.  The Company issues new shares under the 2015 Plan from its authorized but unissued shares.
 
Restricted Stock Awards
 
Restricted stock awards have vesting periods of three years with vesting at the rate of one-third each year. Restricted stock awards have no other performance conditions required for vesting.  A summary of changes in the Company’s nonvested restricted stock awards for the year follows:

Nonvested Stock Awards
 
Shares
   
Weighted-
Average
Grant-Date Fair
Value
   
Aggregate
Intrinsic
Value
 
Outstanding at January 1, 2021
   
183,551
   
$
8.63
   
$
2,024,568
 
Granted
   
67,603
     
11.18
     
745,661
 
Vested
   
(83,220
)
   
8.80
     
(917,917
)
Forfeited
   
(9,847
)
   
8.80
     
(108,612
)
Outstanding at December 31, 2022
   
158,087
   
$
9.62
   
$
1,743,700
 

Compensation cost related to restricted stock awards totaled $703,000 and $684,000 for 2022 and 2021, respectively.
 
As of December 31, 2022, there was $1.4 million of total remaining unrecognized compensation cost related to nonvested restricted stock awards granted under the Company’s stock-based compensation plans.  The cost is expected to be recognized over a weighted-average period of 1.42 years.  The total grant date fair value of restricted stock awards vested during 2022 was $732,000. The total grant date fair value of restricted stock awards vested during 2021 was $660,000.