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Note 14 - Stock-based Compensation
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Compensation and Employee Benefit Plans [Text Block]
14.
STOCK-BASED COMPENSATION
 
The Company maintains a stock incentive plan under which incentive and nonqualified stock options and other stock awards
may
be granted. On
March 13, 2014,
the Company’s Board of Directors adopted, and on
May 29, 2014
our shareholders approved, the
2014
Amended and Restated Stock Option and Incentive Plan (the “Plan”) which amended and restated the Company’s
2006
Stock Option Plan. Under the Plan,
750,000
shares are reserved for the issuance of stock awards to directors, officers, key employees, and others. The stock option exercise price and the restricted stock purchase price under the
2014
Plan shall
not
be less than
85%
of the fair market value of the Company’s common stock on the date the award is granted. The fair market value is determined by the closing price of the Company’s common stock, on its primary exchange, on the same date that the option or award is granted.
 
In
December 2018,
the Company granted
33,000
restricted shares of common stock to certain key employees. These restricted stock awards have a grant date fair value of
$36.35
per share, based on the closing price of the Company’s stock on the date of grant, with
one
fourth
of the award vesting each of the next
four
years on the anniversary date.
 
In
March 2018,
the Company granted
1,932
shares of common stock to non-employee directors. These stock awards have a grant date fair value of
$36.35
per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.
 
In
April 2017,
the Company granted
100,000
restricted shares of common stock to the Company’s Chief Executive Officer. This restricted stock award has a grant date fair value of
$16.38,
based on the closing price of the Company’s stock on the date of grant, with
one
third
of the award vesting each of the next
three
years on the anniversary date.
 
In
March 2017,
the Company granted
4,298
shares of common stock to non-employee directors. These stock awards have a grant date fair value of
$16.29
per share, based on the closing price of the Company’s stock on the date of grant and vests immediately.
 
In
March 2016,
the Company granted
2,275
shares of common stock to non-employee directors. These stock awards have a grant date fair value of
$30.80
per share, based on the closing price of the Company’s stock on the date of grant and vests immediately. Also in
March 2016,
the Company granted
5,000
restricted shares of common stock to the Company’s Chief Executive Officer. This restricted stock award has a grant date fair value of
$30.81,
based on the closing price of the Company’s stock on the date of grant, with
25%
of the award vesting immediately and
25%
vesting for each of the next
three
years.
 
During
2018
and
2017,
there were
no
grants of stock options and there were
no
outstanding stock options at
December 31, 2018.
At
December 31, 2018,
approximately
405,000
shares were available for granting future options or restricted stock.
 
The grant date fair value of stock and stock options vested during
2018,
2017
and
2016
was approximately
$719,000,
$256,000
and
$273,000,
respectively. Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately
$732,000
during
2018
and includes approximately
$70,000
recognized as a result of the grant of
276
shares of stock to each non-employee director during the
first
quarter of
2018.
The Company recognized a total income tax benefit of approximately
$172,000
related to stock-based compensation expense during
2018.
The recognition of stock-based compensation expense decreased diluted and basic earnings per common share by approximately
$0.09
and
$0.10,
respectively, during
2018.
As of
December 
31,
2018,
the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately
$1,864,000
which is being amortized on a straight-line basis over the remaining vesting period. As a result, the Company expects to recognize approximately
$846,000
in additional compensation expense related to unvested restricted stock awards during
2019,
$430,000
in additional compensation expense related to unvested restricted stock awards during
2020,
$294,000
in additional compensation expense related to unvested restricted stock awards during
2021,
and
$294,000
in additional compensation expense related to unvested restricted stock awards during
2022.
 
Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately
$614,000
during
2017
and included approximately
$70,000
recognized as a result of the grant of
614
shares of stock to each non-employee director during the
first
quarter of
2017.
The Company recognized a total income tax benefit of approximately
$231,000
related to stock-based compensation expense during
2017.
The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately
$0.26
during
2017.
 
Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately
$302,000
during
2016
and included approximately
$70,000
recognized as a result of the grant of
325
shares of stock to each non-employee director during the
first
quarter of
2016.
The Company recognized a total income tax benefit of approximately
$113,000
related to stock-based compensation expense during
2016.
The recognition of stock-based compensation expense decreased diluted and basic earnings per common share by approximately
$0.03
and
$0.02
during
2016.
 
Transactions in stock options under these plans are summarized as follows:
 
   
Shares
Under
Option
    
Weighted-
Average
Exercise Price
  
                 
Outstanding—January 1, 2016:
    
66,098
     $
10.92
  
Granted
    
-
      
-
  
Exercised
    
(7,917
 )    
11.41
  
Canceled
    
(2,050
 )    
10.91
  
                 
Outstanding—December 31, 2016:
    
56,131
     $
10.85
  
Granted
    
-
      
-
  
Exercised
    
(11,063
 )    
11.13
  
Canceled
    
-
      
-
  
                 
Outstanding—December 31, 2017:
    
45,068
     $
10.79
  
Granted
    
-
      
-
  
Exercised
    
(45,005
 )    
10.79
  
Canceled
    
(63
 )    
10.90
  
                 
Outstanding—December 31, 2018:
    
-
     $
-
  
                 
Options exercisable—December 31, 2018:
    
-
     $
-
  
 
There were
no
options granted during
2018,
2017,
or
2016.
There were
no
options canceled, forfeited, or expired during
2017.
The weighted-average grant-date fair value of options canceled, forfeited, or expired during
2018
and
2016
was
$6.34
and
$6.07,
respectively.
 
The total intrinsic value of options exercised during the years ended
December 31, 2018,
2017
and
2016,
were approximately
$1,406,000,
$82,000
and
$101,000,
respectively.
 
A summary of the status of the Company’s non-vested restricted stock as of
December 31, 2018
and changes during the year ended
December 31, 2018,
is presented below:
 
   
Restricted Stock
  
   
Number of
Shares
    
Weighted-
Average Grant
Date Fair
Value
  
Nonvested at January 1, 2018
    
104,150
     $
17.14
  
Granted
    
34,932
      
36.35
  
Canceled/forfeited/expired
    
(150
 )    
42.65
  
Vested
    
(38,015
 )    
18.91
  
Nonvested at December 31, 2018
    
100,917
     $
23.09
  
 
 
Cash received from option exercises totaled approximately
$485,000,
$123,000
and
$91,000
during the years ended
December 31, 2018,
2017
and
2016,
respectively. The Company issued new shares upon option exercise.