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Note 13 - Stock Option Grants
 3 Months Ended
Mar. 31, 2016
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
13.
STOCK OPTION GRANTS
 
In accordance with the Company
’s 2013 Incentive Plan, stock option awards have been granted to certain employees and non-employee directors. The awards were granted with an exercise price equal to the market price of USBI’s common stock on the date of grant and have vesting periods ranging from one to three years, with 10-year contractual terms. The Company expects to use shares held as treasury stock to satisfy share option exercises. Currently, the Company holds a sufficient number of treasury shares to satisfy potential exercises.
 
The Company recognizes the cost of services received in exchange for stock option awards based on the grant date fair value of the award, with compensation expense recognized on a straight-line b
asis over the award’s vesting period. The fair value of outstanding awards was determined using the Black-Scholes option pricing model based on the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock.
 
   
2016
    
2015
  
Risk-free interest rate     1.58 %     1.52 %
Expected term   7.5 years     7.5 years  
Expected stock price volatility     25.25 %     54.04 %
Dividend yield     1.50 %     1.50 %
 
The following table summarizes the Company's stock option activity for the periods presented.
 
   
Three
Months Ended
  
   
March 31
, 201
6
    
March 31
, 201
5
  
   
Number of
Shares
    
Average
Exercise
Price
    
Number of
Shares
    
Average
Exercise
Price
  
Options:
                                
Outstanding, beginning of period
     175,550     $ 8.17       83,400     $ 8.09  
Granted
     97,000       8.30       96,150       8.23  
Exercised
    
—
      
—
       —       —  
Expired
    
—
      
—
       —       —  
Forfeited
    
—
      
—
       2,500       8.09  
Options outstanding, end of period
     272,550     $ 8.21       177,050     $ 8.16  
Options exercisable, end of period
     175,550     $ 8.17       81,900     $ 8.09  
 
Stock-based compensation expense related to stock options totaled $0.1 million for both three-month periods ended March 31, 2016 and 2015. The aggregate intrinsic value of stock options outstanding (calculated as the
amount by which the market value of underlying stock exceeds the exercise price of the option) was less than $0.1 million as of both March 31, 2016 and 2015.