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Stock Based Compensation

12 Months Ended

Dec. 31, 2017

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

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

Note 19 - Stock Based Compensation

The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of December 31, 2017. The maximum number of shares of common stock or equivalents, which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of December 31, 2017 are 750,000. The Company intends to issue all shares under the Plan in the form of newly issued shares.

Restricted stock and option awards typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year. The options generally expire ten years from the date of grant. Restricted stock awards granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change of control. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the awards vesting. Restricted shares have the same dividend and voting rights as common stock, while options and performance units do not.

All awards are issued at fair value of the underlying shares at the grant date. The Company expenses the cost of the awards ratably over the vesting period. Forfeiture rates are not estimated but are handled on a case-by-case basis.

No options were issued during the year ended December 31, 2017 or 2016. An aggregate of 57,164 restricted shares and 24,891 performance units were granted and awarded, respectively, during the year ended December 31, 2017 compared to 72,920 and 64,434 granted and awarded, respectively, for the year ended December 31, 2016.

Option activity under the Company’s option plans as of and for the year ended December 31, 2017 were as follows:

		Shares				Weighted- Average Exercise Price				Weighted- Average Remaining Contractual Term (In Years)				Aggregate Intrinsic Value
Outstanding at December 31, 2016			358,367			$	6.26
Granted			-				-
Exercised			(66,389)				6.61
Forfeited/cancelled/expired			-				-
Outstanding at December 31, 2017			291,978			$	6.18				1.97			$	5,714,355
Exercisable at December 31, 2017			288,446			$	6.08				1.93			$	5,673,725

The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on December 31, 2017 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2017. This amount changes based on the fair market value of the Parent Corporation’s stock.

Information related to stock option exercises during 2017:		2017

Intrinsic value of options exercised		$	1,270,521
Cash received from options exercised			417,000
Tax benefit realized from options exercised			264,000

The aggregate intrinsic value of exercised options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the date of exercise and the exercise price, multiplied by the number of in-the-money options) of all options that were exercised during the year ending December 31, 2017. The tax benefit is calculated on any non-qualified options exercised during the period using a 36% tax rate.

The below table represents information regarding restricted shares currently outstanding at December 31, 2017:

		Nonvested Shares				Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2016			111,273			$	16.81
Granted			57,164				23.82
Vested			(65,359)				16.49
Forfeited/cancelled/expired			-				-
Nonvested at December 31, 2017			103,078			$	20.41

As of December 31, 2017, there was $1,073,000 of total unrecognized compensation cost related to nonvested restricted shares granted under the plans. The cost is expected to be recognized over a weighted average period of 1.4 years.

A summary of the status of unearned performance unit awards and the change during the period is presented in the table below:

		Units (expected)				Units (maximum)				Weighted Average Grant Date Fair Value
Unearned at December 31, 2016			151,572				189,455			$	18.47
Awarded			24,891				37,336				22.75
Forfeited			-				-				-
Adjustments			(25,269)				-				18.47
Unearned at December 31, 2017			151,194				226,791			$	19.19

At December 31, 2017, compensation cost of approximately $836,000 related to nonvested awards not yet recognized is expected to be recognized over a weighted-average period of 0.7 years.