Note 10 - Equity Incentive Plan

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note

10:

     Equity Incentive Plan

In

June 2017,

the Company

’s stockholders authorized the adoption of the New Bancorp, Inc.

2017

Equity Incentive Plan (the

“2017

Plan”).

No

more than

97,524

shares of the Company’s common stock

may

be issued under the

2017

Plan, of which a maximum of

69,660

may

be issued pursuant to the exercise of stock options and

27,864

may

be issued pursuant to restricted stock awards, restricted stock units and unrestricted share awards. Stock options awarded to employees

may

be incentive stock options or non-qualified stock options. The shares that

may

be issued

may

be authorized but unissued shares or treasury shares. The

2017

Plan permits the grant of incentive awards in the form of options, stock appreciation rights, restricted share and share unit awards, and performance share awards. The

2017

Plan contains annual and lifetime limits on certain types of awards to individual participants.

Awards

may

vest or become exercisable only upon the achievement of performance measures or based solely on the passage of time af

ter award.  Stock options and restricted stock awards provide for accelerated vesting if there is a change in control (as defined in the

2017

Plan).

On

June 30, 2017,

the Company made awards of restricted shares and granted stock options for

22,931

and

60,080

 shares, respectively, to members of the Board of Directors and to certain members of management. The awards vest over a

five

year period and the stock options have a

ten

year period to expiration.  Each option has an exercise price of

$14.09

as determined on the grant date and expires

10

years from the grant date.

Stock Options

The table below represents the stock option activity for the period shown:

	Options	Weighted average exercise price	Remaining contractual life (years)
Options outstanding at January 1, 2017	-	$                                                                           -	-
Granted	60,080	14.09	10
Exercised	-	-	-
Forfeited	-	-	-
Expired	-	-	-
Options outstanding at June 30, 2017	60,080	$                                                                   14.09	10.0

As of

June 30, 2017,

the Company had

$184,000

of unrecognized compensation expense related to stock options.  The cost of stock options will be amortized in monthly installments over the

five

-year vesting period.  The aggregate grant date fair value of the stock options granted in

2017

was

$184,000.

  The options outstanding at

June 30, 2017,

were granted on

June 30, 2017. 

Accordingly, there are

no

options currently exercisable and

no

compensation expense was recognized.  Additionally, the options outstanding have

no

intrinsic value as of

June 30, 2017.

The fair value of the Company's stock options granted in

2017

was determined using the Black-Scholes option pricing formula.   The following assumptions were used in the formula:

Expected volatility	13.87%
Risk-free interest rate	2.18%
Expected dividend yield	-
Expected life (in years)	7.0
Exercise price for the stock options	$14.09

Expected volatility - Based on the historical volatility of share price for the Company.

Risk-free interest rate - Based on the U.S. Treasury yield curve and expected life of the options at the time of grant.

Dividend yield - New Bancorp, Inc. does

not

anticipate a  quarterly dividend per share.

Expected life - Based on average of the

five

year vesting period and the

ten

year contractual term of the stock option plan.

Exercise price for the stock options - Based on the closing price of the Company's stock on the date of grant.

Restricted Shares

Restricted shares are accounted for as fixed grants using the fair value of the Company's stock at the time of the grant.  Unvested restricted shares

may

not

be disposed of or transferred during the vesting period.

The table below presents the restricted stock award activity for the period shown:

	Service-Based Restricted stock awards	Weighted average grant date fair value
Non-vested at January 1, 2017	-	$                                                                                                                                          -
Granted	22,931	14.09
Vested	-	-
Forfeited	-	-
Nonvested at June 30, 2017	22,931	$                                                                                                                                   14.09

As of

June 30, 2017,

the Company had

$323,000

of unrecognized compensation expense related to restricted shares.  The cost of the restricted shares will be amortized in monthly installments over the

five

-year vesting period.  There was

no

expense recognized related to the restricted shares during the period ended

June 30, 2017

as the shares were granted on

June 30, 2017.