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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 7 - Stock-Based Compensation As of September 30, 2015, the Company maintained the Shore Bancshares, Inc. 2006 Stock and Incentive Compensation Plan (“2006 Equity Plan”) under which it may issue shares of common stock or grant other equity-based awards. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date over a three- to five-year period of time, and, in the case of stock options, expire 7 years from the grant date. On July 1, 2015, the Company's board of directors (the "Board") also adopted a form of performance share/restricted stock unit award agreement that will be used to grant performance equity incentive awards pursuant to and subject to the provisions of the 2006 Equity Plan. Stock-based compensation expense is recognized ratably over the requisite service period for all awards, is based on the grant-date fair value and reflects forfeitures as they occur. The following tables provide information on stock-based compensation expense for the three and nine months ended September 30, 2015 and 2014.
|  | For the Three Months Ended |  | For the Nine Months Ended |
|  | September 30, |  | September 30, |
(Dollars in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014 |
Stock-based compensation expense |  | $ | 41 |  | $ | 30 |  | $ | 232 |  | $ | 79 |
Excess tax expense related to stock-based compensation |  |  | 3 |  |  | - |  |  | 3 |  |  | - |
|  | September 30, |
(Dollars in thousands) |  | 2015 |  | 2014 |
Unrecognized stock-based compensation expense |  | $ | 55 |  | $ | 92 |
Weighted average period unrecognized expense is expected to be recognized |  |  | 0.4 years |  |  | 1.0 years |
The following table summarizes restricted stock award activity for the Company under the 2006 Equity Plan for the nine months ended September 30, 2015 and 2014.
|  | Number |  | Weighted Average Grant |
September 30, 2015 |  | of Shares |  | Date Fair Value |
Nonvested at beginning of period |  | 14,251 |  | $ | 8.33 |
Granted |  | 11,915 |  |  | 9.19 |
Vested |  | (13,678) |  |  | 8.90 |
Cancelled |  | - |  |  | - |
Nonvested at end of period |  | 12,488 |  | $ | 8.74 |
|  | Number |  | Weighted Average Grant |
September 30, 2014 |  | of Shares |  | Date Fair Value |
Nonvested at beginning of period |  | 13,930 |  | $ | 8.33 |
Granted |  | 3,654 |  |  | 9.57 |
Vested |  | (3,333) |  |  | 8.93 |
Cancelled |  | - |  |  | - |
Nonvested at end of period |  | 14,251 |  | $ | 8.51 |
The fair value of restricted stock awards that vested during the first nine months of 2015 and 2014 was $122 thousand and $30 thousand, respectively. The following table summarizes stock option activity for the Company under the 2006 Equity Plan for the nine months ended September 30, 2015 and 2014.
|  |  | Weighted |
|  |  | Number |  | Average |
September 30, 2015 |  |  | of Shares |  | Exercise Price |
Outstanding at beginning of period |  |  | 27,108 |  | $ | 6.64 |
Granted |  |  | 34,219 |  |  | 9.18 |
Exercised |  |  | - |  |  | - |
Expired/Cancelled |  |  | - |  |  | - |
Outstanding at end of period |  |  | 61,327 |  | $ | 8.05 |
Exercisable at end of period |  |  | 27,108 |  | $ | 6.64 |
|  |  |  | Weighted |
|  | Number |  | Average |
September 30, 2014 |  | of Shares |  | Exercise Price |
Outstanding at beginning of period |  | 40,662 |  | $ | 6.64 |
Granted |  | - |  |  | - |
Exercised |  | - |  |  | - |
Expired/Cancelled |  | - |  |  | - |
Outstanding at end of period |  | 40,662 |  | $ | 6.64 |
Exercisable at end of period |  | 20,331 |  | $ | 6.64 |
The weighted average fair value of stock options granted during 2015 was $3.44. The Company estimates the fair value of options using the Black-Scholes valuation model with weighted average assumptions for dividend yield, expected volatility, risk-free interest rate and expected lives (in years). The expected dividend yield is calculated by dividing the total expected annual dividend payout by the average stock price. The expected volatility is based on historical volatility of the underlying securities. The risk-free interest rate is based on the Federal Reserve Bank’s constant maturities daily interest rate in effect at grant date. The expected contract life of the options represents the period of time that the Company expects the awards to be outstanding based on historical experience with similar awards. The following weighted average assumptions were used as inputs to the Black-Scholes valuation model for options granted in 2015.
Dividend yield |  | 0 | %
Expected volatility |  | 32 | %
Risk-free interest rate |  | 1.97 | %
Expected contract life (in years) |  | 7 years |
At the end of the third quarter of 2015, the aggregate intrinsic value of the options outstanding under the 2006 Equity Plan was $102 thousand based on the $9.72 market value per share of the Company’s common stock at September 30, 2015. Similarly, the aggregate intrinsic value of the options exercisable was $83 thousand at September 30, 2015. Since there were no options exercised during the first nine months of 2015 or 2014, there was no intrinsic value associated with stock options exercised and no cash received on exercise of options. At September 30, 2015, the weighted average remaining contract life of options outstanding was 6.5 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51659978&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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