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Note 14 - Stock Awards
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
14.
STOCK AWARDS
 
In accordance with the
2013
Incentive Plan, stock awards, including stock options and restricted stock, have been
granted to certain employees and non-employee directors. Shares of common stock available for distribution to satisfy the grants
may
consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner.  Stock-based compensation expense related to stock awards totaled
$0.2
million and
$0.1
million as of
December 31, 2017
and
2016,
respectively.
 
Stock Options
 
The stock option awards were granted with an exercise price equal to the market price of Bancshares’ common stock on the date of the grant and have vesting periods ranging from
one
to
three
years, with
10
-year contractual terms.
 
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 basis 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 Bancshares
’
common stock.
 
   
2017
    
2016
  
   
 
  
Risk-free interest rate
  
 
2.23
 %  
 
1.58
 %
Expected term
    
7.5 years
      
7.5 years
  
Expected stock price volatility
    
25.36
%
    
25.25
%
Dividend yield
    
1.50
%
    
1.50
%
 
The following table summarizes the Company’s stock option activity for the periods presented.
 
   
December 31, 2017
    
December 31, 2016
  
   
Number of
Shares
    
Average
Exercise
Price
    
Number of
Shares
    
Average
Exercise
Price
  
Options:
                                
Outstanding, beginning of year
    
272,550
     $
8.21
      
175,550
     $
8.17
  
Granted
    
70,600
      
13.84
      
97,000
      
8.30
  
Exercised
    
21,816
      
8.15
      
—
      
—
  
Expired
    
—
      
—
      
—
      
—
  
Forfeited
    
3,334
      
11.79
      
—
      
—
  
Options outstanding, end of year
    
318,000
     $
9.43
      
272,550
     $
8.21
  
Options exercisable, end of year
    
206,133
     $
8.20
      
175,550
     $
8.17
  
 
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 approximately
$1.2
million and
$0.5
million as of
December 31, 2017
and
2016,
respectively.
 
Restricted Stock
 
During the year ended
December 31, 2017,
11,283
shares of restricted stock were granted with vesting periods of either
one
or
three
years. 
No
shares of restricted stock were granted during the year ended
December 31, 2016.
The Company recognizes the cost of services received in exchange for restricted stock awards based on the grant date closing price of the stock, with compensation expense recognized on a straight-line basis over the award's vesting period.