Note 13 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 13:     EMPLOYEE BENEFIT PLANS

Equity Plans

On May 27, 2015, the Company’s stockholders voted to approve the Guaranty Federal Bancshares, Inc. 2015 Equity Plan (the”2015 Plan”). The Plan provides for the grant of up to 250,000 shares of Common Stock under equity awards including stock options, stock awards, restricted stock, stock appreciation rights, performance units, or other equity-based awards payable in cash or stock to key employees and directors of the Company and the Bank. As of December 31, 2015, restricted stock for 2,966 shares of Common Stock has been granted under the Plan.

On May 26, 2010, the Company’s stockholders voted to approve the Guaranty Federal Bancshares, Inc. 2010 Equity Plan (the”2010 Plan”). The Plan provides for the grant of up to 200,000 shares of Common Stock under equity awards including stock options, stock awards, restricted stock, stock appreciation rights, performance units, or other equity-based awards payable in cash or stock to key employees and directors of the Company and the Bank. As of December 31, 2015, non-incentive stock options for 25,000 shares and restricted stock for 139,330 shares of Common Stock have been granted under the Plan.

In addition, the Company established four stock option plans for the benefit of certain directors, officers and employees of the Company and its subsidiary. A committee of the Company’s Board of Directors administers the plans. The stock options under these plans may be either incentive stock options or nonqualified stock options. Incentive stock options can be granted only to participants who are employees of the Company or its subsidiary. The option price must not be less than the market value of the Company stock on the date of grant. All options expire no later than ten years from the date of grant. The options vest at the rate of 20% per year over a five-year period.

The tables below summarize transactions under the Company’s equity plans:

Stock Options

	Number of shares
	Incentive Stock Option			Non-Incentive Stock Option			Weighted Average Exercise Price
Balance outstanding as of January 1, 2013		174,500			167,000		$	16.38
Granted		-			-			-
Exercised		(1,800	)		-			5.23
Forfeited		(4,600	)		(46,000	)		15.86
Balance outstanding as of December 31, 2013		168,100			121,000			16.54
Granted		-			-			-
Exercised		(25,100	)		(14,500	)		5.33
Forfeited		(2,700	)		(24,000	)		19.03
Balance outstanding as of December 31, 2014		140,300			82,500			18.23
Granted		-			-			-
Exercised		(10,800	)		(25,000	)		5.22
Forfeited		(38,000	)		-			25.19
Balance outstanding as of December 31, 2015		91,500			57,500		$	19.58
Options exercisable as of December 31, 2015		91,500			57,500		$	19.58

Restricted Stock

	Number of shares			Weighted Average Grant- Date Fair Value
Balance of shares non-vested as of January 1, 2013		27,313		$	7.30
Granted		17,326			7.17
Vested		(16,576	)		7.00
Forfeited		(434	)		7.25
Balance of shares non-vested as of December 31, 2013		27,629			7.39
Granted		34,562			10.99
Vested		(31,688	)		8.55
Forfeited		-			-
Balance of shares non-vested as of December 31, 2014		30,503			10.26
Granted		28,951			14.78
Vested		(15,083	)		11.64
Forfeited		(894	)		12.26
Balance of shares non-vested as of December 31, 2015		43,477		$	12.75

As of December 31, 2015, total outstanding stock options of 149,000 had a remaining contractual life of 2.27 years.

The total intrinsic value of outstanding stock options was $565,025 and $727,827 at December 31, 2015 and 2014, respectively. The total intrinsic value of outstanding exercisable stock options was $565,025 and $651,781 at December 31, 2015 and 2014, respectively. The total fair value of share awards vested was $143,350 and $361,517 during 2015 and 2014, respectively.

In February 2015 and 2014 and January 2013, the Company granted restricted stock to directors that was fully vested and thus, expensed in full during the year ended December 31, 2015, 2014 and 2013, respectively. The amount expensed of $122,476, $122,538 and $116,032 for 2015, 2014 and 2013, respectively, represents 8,281, 11,242 and 16,576 shares of common stock at a market price of $14.79, $10.90 and $7.00, respectively, at the date of grant. In June 2015, the Company granted 966 shares of restricted stock to directors that have a cliff vesting at the end of three years. The expense is being recognized over the applicable vesting period. The amount expensed during 2015 was $2,434.

During 2015, the Company granted 19,704 shares of restricted stock to officers that have a cliff vesting at the end of three years. During 2014, the Company granted 23,320 shares of restricted stock to officers that have a cliff vesting at the end of three years. During 2012, the Company granted 27,313 shares of restricted stock to officers that have a cliff vesting at the end of two years, except the CEO, who has a three year cliff vesting. The expense is being recognized over the applicable vesting period. The amount expensed during 2015, 2014 and 2013 was $176,644, $102,099 and $89,357, respectively.

Total stock-based compensation expense is comprised of expense for restricted stock awards and stock options. Expense recognized for the years ended December 31, 2015, 2014 and 2013 was $297,295, $254,340 and $254,508, respectively. As of December 31, 2015, there was $310,639 of unrecognized compensation expense related to nonvested restricted stock awards, which will be recognized over the remaining vesting periods.