Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 8 - Stock-Based Compensation

Bancorp has a stock-based compensation plan for directors, officers, and other key employees of Bancorp.  The aggregate number of shares of common stock that may be issued with respect to the awards granted under the plan is 500,000 plus any shares forfeited under Bancorp’s old stock-based compensation plan.  Under the terms of the stock-based compensation plan, Bancorp has the ability to grant various stock compensation incentives, including stock options, stock appreciation rights, and restricted stock.  The stock-based compensation is granted under terms and conditions determined by the Compensation Committee of the Board of Directors.  Under the stock-based compensation plan, stock options generally have a maximum term of ten years, and are granted with an exercise price at least equal to the fair market value of the common stock on the date the options are granted.  Generally, options granted to directors of Bancorp vest immediately, and options granted to officers and employees vest over a five-year period, although the Compensation Committee has the authority to provide for different vesting schedules.

Bancorp follows FASB ASC 718, “Compensation – Stock Compensation”, to account for stock-based compensation.  FASB ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense in the statement of operations at fair value.  FASB ASC 718 requires an entity to recognize the expense of employee services received in share-based payment transactions and measure the expense based on the grant date fair value of the award.  The expense is recognized over the period during which an employee is required to provide service in exchange for the award.

There were no options granted during the three months ended March 31, 2015 and 2014.

Stock-based compensation expense for the three months ended March 31, 2015 and 2014 totaled $34,000 and $59,000, respectively. There were 20,500 options exercised during the three months ended March 31, 2015 and no options exercised the three months ended March 31, 2014.

Information regarding Bancorp’s stock-based compensation plan as of and for the three months ended March 31, 2015 is as follows:

	2015
	Shares			Weighted Average Price
Options outstanding, December 31, 2014		328,200		$	4.33
Options granted		-			-
Options exercised		(20,500	)	$	4.53
Options forfeited		(49,400	)	$	4.13
Options outstanding, March 31, 2015		258,300		$	4.36
Options exercisable, March 31, 2015		75,901		$	4.12

The aggregate intrinsic value of the options outstanding as of March 31, 2015 and December 31, 2014 was $162,694 and $122,160, respectively.  The aggregate intrinsic value of the options exercisable as of March 31, 2015 and December 31, 2014 was $65,000 and $60,000 respectively.

The following table summarizes the nonvested options in Bancorp’s stock option plan as of March 31, 2015.

	Shares			Weighted Average Grant Date Exercise Price
Nonvested options outstanding, December 31, 2014		198,505		$	4.44
Nonvested options granted		-			-
Nonvested options vested		(16,106	)	$	4.34
Nonvested options forfeited		-			-
Nonvested options outstanding, March 31, 2015		182,399		$	4.45

As of March 31, 2015, there was $493,000 of total unrecognized stock-based compensation expense related to nonvested stock options, which is expected to be recognized over a period of fifty-five months.