Note 18 - Shareholders' Equity

12 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 18. SHAREHOLDERS’ EQUITY

On December 11, 2015, the Holding Company completed the redemption of all of the outstanding shares of the Holding Company’s preferred stock designated as Senior Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), held by the US Treasury Department under the Small Business Lending Fund Program. The Holding Company paid $20.0 million to redeem the Series B Preferred Stock plus $39 thousand in accrued but unpaid dividends. The Holding Company exercised its optional redemption rights pursuant to the terms of the Securities Agreement. As a result of the SBLF Redemption, the Holding Company’s obligations under the Securities Agreement are terminated. The Holding Company funded the SBLF Redemption using the net proceeds from (i) its issuance and sale of $10.0 million in aggregate principal amount of its 6.88% Fixed to Floating rate Subordinated Notes due 2025 and (ii) the $10.0 million dollar loan provided to the Holding Company pursuant to the Loan Agreement, dated as of December 10, 2015 between the Holding Company and NexBank SSB.

The Holding Company authorized, repurchased and subsequently retired 700,000 common shares under a plan announced in 2014 and 2,000,000 common shares under two separate plans announced in 2013.

Stock Plans – The 2008 Stock Option Plan was approved by the Holding Company’s shareholders on May 20, 2008 and amended by the 2010 Equity Incentive Plan (“the Plan”) which was approved by the Holding Company’s shareholders on May 15, 2010. The amended Plan provides for awards in the form of equity awards including stock options, restricted stock and restricted stock units which may constitute incentive stock options (“Incentive Options”) under Section 422(a) of the Internal Revenue Code of 1986, as amended, or non-statutory stock options to key personnel of the Company, including directors. The Plan provides that Incentive Options and non-statutory stock options under the Plan may not be granted at less than 100% of fair market value of the Holding Company’s common stock on the date of the grant. Generally, all options under the plan will vest at 20% per year from the date of the grant. Vesting may be accelerated in case of an option holder’s death, disability, and retirement or in case of a change of control.

For the years ended December 31, 2015, 2014 and 2013, stock option compensation expense was $42 thousand, $54 thousand, and $29 thousand, respectively. At December 31, 2015, 2014 and 2013, there were $55 thousand, $72 thousand, and $53 thousand, respectively, of total unrecognized compensation costs related to non-vested stock option payments. The unrecognized compensation costs are expected to be recognized over a weighted average period of two years.

Activity in stock-based compensation plan

The following table summarizes information about stock option activity for the years ended December 31, 2015, 2014 and 2013.

				Weighted				Weighted
				Average		Aggregate		Average
	Number			Exercise		Intrinsic		Remaining
	of Shares			Price		Value		Contractual Term
Options outstanding December 31, 2013		265,437		$	6.23	$	255,121		5.90
Granted		49,900		$	6.35	$	40		9.33
Exercised		(5,700	)	$	3.72	$	13,159		7.11
Forfeited		(53,537	)	$	9.67	$	—		1.09
Options outstanding December 31, 2014		256,100		$	5.59	$	274,297		6.58
Granted		20,000		$	5.83	$	—		9.05
Exercised		(38,500	)	$	4.05	$	59,494		6.17
Forfeited		(3,500	)	$	11.59	$	—		—
Options outstanding December 31, 2015		234,100		$	5.77	$	319,483		5.87
Exercisable at December 31, 2015		163,040		$	5.91	$	233,113		5.04

At December 31, 2015, 495 thousand common shares were available for future grants under the Plan. As of December 31, 2015, 2014 and 2013, 163 thousand shares, 168 thousand shares, and 164 thousand shares, respectively, were available to be exercised. The grant date fair value per share of the 2015, 2014 and 2013 stock option awards was $1.33, $1.45 and $1.66, respectively.

For the years ended December 31, 2015, 2014 and 2013, restricted stock compensation expense was $89 thousand, $6 thousand, and $6 thousand, respectively. At December 31, 2015, 2014 and 2013, there were $181 thousand, $17 thousand, and $23 thousand, respectively, of total unrecognized compensation costs related to non-vested restricted stock payments. The unrecognized compensation costs are expected to be recognized over a weighted average period of three years.

The following table summarizes information about unvested restricted shares and restricted shares granted for the years ended December 31, 2015, 2014 and 2013.

				Weighted				Weighted
				Average		Aggregate		Average
	Number			Grant		Intrinsic		Remaining
	of Shares			Price		Value		Contractual Term
Unvested restricted shares December 31, 2013		4,000		$	5.81	$	22,480		3.93
Vested		(1,000	)	$	5.81	$	5,810		2.93
Unvested restricted shares December 31, 2014		3,000		$	5.81	$	17,880		2.93
Granted		53,831		$	5.90	$	242,125		2.25
Vested		(14,155	)	$	5.84	$	81,182		1.45
Unvested restricted shares December 31, 2015		42,676		$	5.95	$	285,076		2.49

Restricted shares vest over a three to five year service period. Unvested restricted shares have no dividend or voting rights.