Note 6 - Equity-based Compensation

9 Months Ended

Sep. 30, 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

nine

months ended

September 30, 2018

and

2017

is presented below:

	For the Nine Months Ended September 30, 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		(15,464)		9.65		-
Forfeited or expired		(7,734)		11.08		-
Outstanding, September 30, 2018		188,910	$	14.71		6.0
Exercisable, September 30, 2018		7,260	$	9.65		0.8

	For the Nine Months Ended September 30, 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, September 30, 2017		34,190	$	9.65		1.8
Exercisable, September 30, 2017		34,190	$	9.65		1.8

The exercise price of outstanding stock options at

September 30, 2018

range from

$9.65

to

$15.48

per share. The grant date fair value of stock options awarded in the

nine

months ended

September 30, 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

The intrinsic value of the

15,464

stock options exercised in the

first

nine

months of

2018

was

$89,000.

The Company had

75,179

restricted stock awards outstanding at

September 30, 2018

including

429

granted in the

nine

months ended

September 30, 2018.

There were

74,750

 restricted stock awards outstanding at

December 31, 2017.

Equity-based expense for the

nine

months ended

September 30, 2018

was

$413,000

of which

$306,000

was charged to compensation expense and

$107,000

was charged to other noninterest expense. There was

no

stock-based expense for the

nine

months ended

September 30, 2017.  

As of

September 30, 2018,

there was

$486,000

and

$775,000

of total unrecognized equity-based expense related to unvested stock options and restricted stock awards granted under the

2017

Equity Incentive Plan, respectively, that is expected to be recognized over the next

4.2

years.