Note 6 - Equity-based Compensation

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

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

NOTE

6

– EQUITY-BASED COMPENSATION

The Company has fully vested stock options outstanding under the

2001

Stock Option Plan and unvested stock options and restricted stock awards under the

2017

Equity Incentive Plan.

A summary of stock option activity during the

three

months ended

March 31, 2018

and

2017

is presented below:

	For the Three Months Ended March 31, 2018
						Average
				Weighted-		Remaining
				Average		Contractual
	Shares			Exercise Price		Term (years)
Outstanding, December 31, 2017		207,108		$	14.18		6.2
Granted		5,000			15.48
Exercised		-			-
Forfeited or expired		(1,002	)		14.90
Outstanding, March 31, 2018		211,106		$	14.28		5.9
Exercisable, March 31, 2018		28,456		$	9.65		1.3

	For the Three Months Ended March 31, 2017
					Average
			Weighted-		Remaining
			Average		Contractual
	Shares		Exercise Price		Term (years)
Outstanding, December 31, 2016		34,190	$	9.65		2.3
Granted		-		-
Exercised		-		-
Forfeited or expired		-		-
Outstanding, March 31, 2017		34,190	$	9.65		2.3
Exercisable, March 31, 2017		34,190	$	9.65		2.3

The grant date fair value of stock options awarded in the quarter ended

March 31, 2018

was

$4.04

using the Black-Scholes-Merton options pricing model with the following inputs and assumptions:

Grant date stock price	$15.48
Dividend yield	0.00%
Expected volatility	19.55%
Risk-free interest rate	2.75%
Expected life in years	6

As of

March 31, 2018,

there was

$549,000

 of total unrecognized cost related to unvested stock options granted under the

2017

Equity Incentive Plan that is expected to be recognized over a

5

-year period.

The Company had

75,179

restricted stock awards outstanding at

March 31, 2018

including

429

granted in the

three

months ended

March 31, 2018. There were 7

4,750

 restricted stock awards outstanding at

December 31, 2017.

Stock-based expense for the

three

months ended

March 31, 2018

was

$86,000

of which

$60,000

was charged to stock-based compensation expense and

$26,000

was charged to stock-based other noninterest expense. There was

no

stock-based expense for the

three

months ended

March 31, 2017.