STOCK COMPENSATION PLAN

12 Months Ended

Dec. 31, 2016

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

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

NOTE 18 — STOCK COMPENSATION PLAN

On February 10, 1998, the Board of Directors adopted the 1998 Employee Stock Option Plan and initially reserved 100,000 shares of common stock for issuance under the plan for certain employees of the Bank. After adjustments for the effects of stock dividends, options exercised and options forfeited, there remains 1,500 exercisable options issued and outstanding. Under the Plan, options are granted at fair market value and the time period during which any option granted may be exercised may not commence before six months or continue beyond the expiration of ten years after the option is awarded. Upon exercise of the stock options, shares of the Corporation’s stock are issued from Treasury Stock. The Plan expired in 2008, and therefore, no stock options are available for issuance.

The fair value of stock options issued to employees is measured on the date of the grant and is recognized as compensation expense over the requisite service period. Expected volatility and dividend yield are based on historical stock prices and dividend amounts over past time periods equal in length to the life of the options. The risk-free interest rate is determined using the U.S. Treasury yield curve in effect at the date of the grant. The expected life of the options is calculated using the average term of the vesting period and the maximum term.

Information about stock options outstanding at December 31, 2016, 2015 and 2014, is summarized as follows:

	2016				2015				2014
			Weighted				Weighted				Weighted
			Average				Average				Average
	Stock		Exercise		Stock		Exercise		Stock		Exercise
	Options		Price		Options		Price		Options		Price
Balance at January 1		1,500	$	16.75		4,323	$	18.28		4,823	$	18.12
Exercised		—		—		(2,037)		18.37		—		—
Forfeited/Expired		—		—		(786)		20.95		(500)		16.75
Balance at December 31		1,500	$	16.75		1,500	$	16.75		4,323	$	18.28
Exercisable at December 31		1,500	$	16.75		1,500	$	16.75		4,323	$	18.28

Under the terms of the Plan, the stock options including amendments as to price and terms were adjusted for the stock dividend in 2006.

The exercise price of options outstanding and exercisable as of December 31, 2016 is $16.75 per share. The weighted average remaining contracted life is approximately 1.00 years.

The 1,500 options outstanding and exercisable as December 31, 2016 have an intrinsic value, which is the amount that the value of the underlying stock exceeds the exercise price of the options, of $12,000. The total intrinsic value of the options exercised during the years ended December 31, 2016, 2015 and 2014 was $0, $16,000 and $0, respectively. Cash received from stock options exercised for the years ended December 31, 2016, 2015 and 2014 was $0, $37,000 and $0, respectively.

The following table summarizes information concerning the 1998 Employee Stock Option Plan at December 31, 2016.

	Options Outstanding						Options Exercisable
			Weighted		Weighted				Weighted
			Average		Average				Average
	Number		Remaining		Exercise		Number		Exercise
Year	Outstanding*		Contractual Life		Price		Exercisable		Price
2007		1,500		1.00	$	16.75		1,500	$	16.75

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*As adjusted for stock dividend noted above.