Note 6 - Stock-based Compensation

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

NOTE

6

– STOCK-BASED COMPENSATION

The Company has fully vested stock options outstanding under the

2001

Stock Option Plan and vested 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, 2019

and

2018

is presented below:

	For the three Months Ended March 31, 2019
					Average
			Weighted-		Remaining
			Average		Contractual
	Shares		Exercise Price		Term (years)
Outstanding, December 31, 2018		164,410	$	14.69		5.8
Granted		1,000		14.63
Exercised		-		-
Forfeited or expired		-		-
Outstanding, March 31, 2019		165,410	$	14.69		5.6
Exercisable, March 31, 2019		38,690	$	13.93		4.7

	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

The exercise price of outstanding stock options at

March 31, 2019

range from

$9.65

to

$15.48

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

three

months ended

March 31, 2019

was

$3.77

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

Grant date stock price	$	14.63
Dividend yield		0.00	%
Expected volatility		19.55	%
Risk-free interest rate		2.63	%
Expected life in years		6

A summary of restricted stock activity during the

three

months ended

March 31, 2019

and

2018

is presented below:

			Weighted		Average
			Average		Remaining
			Grant Date		Contractual
	Shares		Price		Term (years)
	For the Quarter Ended March 31, 2019
Outstanding, December 31, 2018		49,829	$	14.90		4.0
Granted		-		-
Vested		-		-
Forfeited or expired		-		-
Outstanding, March 31, 2019		49,829	$	14.90		3.8

	For the Quarter Ended March 31, 2018
Outstanding, December 31, 2017		74,750	$	14.90	4.9
Granted		429		15.48
Vested		-		-
Forfeited or expired		-		-
Outstanding, March 31, 2018		75,179	$	14.90	4.7

Compensation and benefits included

$75,000

and

$86,000

of stock-based expense for the

three

months ended

March 31, 2019

and

2018,

respectively.

As of

March 31, 2019,

there was

$1,130,000

of total unrecognized stock-based expense including

$448,000

related to unvested stock options and

$682,000

from restricted stock awards granted under the

2017

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

3.7

years.