Macatawa Bank Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 12 - Stock-Based Compensation

Note 12 - Stock-Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Text Block]

NOTE 12 – 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 895,698 shares under the “2015 Plan” available for future issuance as of December 31, 2023. 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, 2023		158,087		$	9.62	$	1,783,221
Granted		82,860			9.81		934,661
Vested		(94,834	)		9.25		(1,069,728	)
Forfeited		(5,008	)		8.98		(56,490	)
Outstanding at December 31, 2023		141,105		$	10.01	$	1,591,664

Compensation cost related to restricted stock awards totaled $820,000 and $703,000 for 2023 and 2022, respectively.

As of December 31, 2023, there was $1.3 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 1.58 years. The total grant date fair value of restricted stock awards vested during 2023 was $877,000. The total grant date fair value of restricted stock awards vested during 2022 was $732,000.