XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Stock-Based Compensation | 6 Months Ended
--- | ---
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 7 - Stock-Based Compensation At the 2016 annual meeting, stockholders approved the Shore Bancshares, Inc. 2016 Stock and Incentive Plan (“2016 Equity Plan”), replacing the Shore Bancshares, Inc. 2006 Stock and Incentive Plan (“2006 Equity Plan”), which expired on that date. The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one- to five-year period of time, and, in the case of stock options, expire 10 years from the grant date. As part of the 2016 Equity Plan, a performance equity incentive award program, known as the “Long-term incentive plan” allows participating officers of the Company to earn incentive awards of performance share/restricted stock units if certain pre-determined targets are achieved at the end of a three-year performance cycle. Stock-based compensation expense based on the grant date fair value is recognized ratably over the requisite service period for all awards and reflects forfeitures as they occur. The following tables provide information on stock-based compensation expense for the three and six months ended June 30, 2016 and 2015.
|  | For the Three Months Ended |  | For the Six Months Ended |
|  | June 30, |  | June 30, |
(Dollars in thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Stock-based compensation expense |  | $ | 66 |  | $ | 53 |  | $ | 177 |  | $ | 191 |
Proceeds from issuance of common stock |  |  | - |  |  | 2 |  |  | 3 |  |  | 2 |
|  | June 30, |
(Dollars in thousands) |  | 2016 |  | 2015 |
Unrecognized stock-based compensation expense |  | $ | 179 |  | $ | 96 |
Weighted average period unrecognized expense is expected to be recognized |  |  | 0.8 years |  |  | 0.6 years |
The following table summarizes restricted stock award activity for the Company under the 2016 Equity Plan for the six months ended June 30, 2016 and 2015.
June 30, 2016 |  | Number |  | Weighted Average Grant |
|  | of Shares |  | Date Fair Value |
Nonvested at beginning of period |  |  | 12,488 |  | $ | 8.74 |
Granted |  |  | 23,239 |  |  | 11.47 |
Vested |  |  | (18,662) |  |  | 9.63 |
Cancelled |  |  | - |  |  | - |
Nonvested at end of period |  |  | 17,065 |  | $ | 11.46 |
June 30, 2015 |  | Number |  | Weighted Average Grant |
|  | 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 |  | $ | 8.34 |
The fair value of restricted stock awards that vested during the first six months of 2016 and 2015 was $180 thousand and $122 thousand, respectively. The following table summarizes stock option activity for the Company under the 2006 and 2016 Equity Plan for the six months ended June 30, 2016 and 2015.
June 30, 2016 |  |  |  |  | Weighted |
|  | Number |  | Average |
|  | of Shares |  | Exercise Price |
Outstanding at beginning of period |  |  | 61,327 |  | $ | 8.05 |
Granted |  |  | 12,443 |  |  | 11.12 |
Exercised |  |  | (450) |  |  | 6.64 |
Expired/Cancelled |  |  | - |  |  | - |
Outstanding at end of period |  |  | 73,320 |  | $ | 8.58 |
Exercisable at end of period |  |  | 69,990 |  | $ | 8.46 |
June 30, 2015 |  |  |  |  | Weighted |
|  | Number |  | Average |
|  | 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 |
The weighted average fair value of stock options granted during 2016 was $5.03. 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 2016 and 2015.
|  | 2016 |  | 2015 |
Dividend yield |  |  | 0.73 | % |  | 0 | %
Expected volatility |  |  | 38.60 | % |  | 32 | %
Risk-free interest rate |  |  | 1.75 | % |  | 1.97 | %
Expected contract life (in years) |  |  | 10 years |  |  | 7 years |
At the end of the second quarter of 2016, the aggregate intrinsic value of the options outstanding under the 2016 Equity Plan was $232 thousand based on the $11.75 market value per share of the Company’s common stock at June 30, 2016. Similarly, the aggregate intrinsic value of the options exercisable was $230 thousand at June 30, 2016. The intrinsic value on options exercised in 2016 was $2 thousand based on the $11.35 market value per share of the Company’s common stock at February 8, 2016. Since there were no options exercised during the first six months of 2015, there was no intrinsic value associated with stock options exercised and no cash received on exercise of options. At June 30, 2016, the weighted average remaining contract life of options outstanding was 5.7 years.

X
- 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=65895303&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=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: 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 5: 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 6: 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 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration