Note 15 - Stock-Based Compensation

12 Months Ended

Dec. 31, 2014

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

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

Note 15.          Stock-Based Compensation

Stock-based compensation expense was reflected in the consolidated financial statements as follows for the years ended December 31, 2014, 2013, and 2012.

	2014		2013		2012
Stock option and incentive plans	$	832,845	$	734,827	$	798,929
Stock purchase plan		58,774		57,452		50,831
	$	891,619	$	792,279	$	849,760

Stock option and incentive plans:

The Company’s Board of Directors adopted in January 2008, and the stockholders approved in May 2008, the QCR Holdings, Inc. 2008 Equity Incentive Plan (“2008 Equity Incentive Plan”). Up to 250,000 shares of common stock may be issued to employees and directors of the Company and its subsidiaries pursuant to the exercise of nonqualified stock options and restricted stock granted under the 2008 Equity Incentive Plan. The Company’s Board of Directors adopted in February 2010, and the stockholders approved in May 2010, the QCR Holdings, Inc. 2010 Equity Incentive Plan (“2010 Equity Incentive Plan”). Up to 350,000 shares of common stock may be issued to employees and directors of the Company and its subsidiaries pursuant to the exercise of the nonqualified stock options and restricted stock granted under the 2010 Equity Incentive Plan. The Company’s Board of Directors adopted in February 2013, and the stockholders approved in May 2013, the QCR Holdings, Inc. 2013 Equity Incentive Plan (“2013 Equity Incentive Plan”). Up to 350,000 shares of common stock may be issued to employees and directors of the Company and its subsidiaries pursuant to the exercise of nonqualified stock options and restricted stock granted under the 2013 Equity Incentive Plan. The 2008 Equity Incentive Plan, the 2010 Equity Incentive Plan, and the 2013 Equity Incentive Plan (collectively, “the stock option plans”) are administered by the Compensation Committee of the Board of Directors (the “Committee”). As of December 31, 2014, there were 186,589 remaining options available for grant under the stock option plans.

The number and exercise price of options granted under the stock option plans are determined by the Committee at the time the option is granted. In no event can the exercise price be less than the value of the common stock at the date of the grant for incentive stock options. All options have a 10-year life and will vest and become exercisable from 1-to-7 years after the date of the grant. Only nonqualified stock options have been issued to date.

In the case of nonqualified stock options, the stock option plans provide for the granting of "Tax Benefit Rights" to certain participants at the same time as these participants are awarded nonqualified options. Each Tax Benefit Right entitles a participant to a cash payment, which is expensed by the Company, equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price of the related option multiplied by the difference between the rate of tax on ordinary income over the rate of tax on capital gains (federal and state).

A summary of the stock option plans as of December 31, 2014, 2013, and 2012 and changes during the years then ended is presented below:

	December 31,
	2014					2013					2012
				Weighted					Weighted					Weighted
				Average					Average					Average
				Exercise					Exercise					Exercise
	Shares			Price		Shares			Price		Shares			Price
Outstanding, beginning		662,506		$	13.82		608,852		$	13.27		535,130		$	13.85
Granted		82,609			17.11		96,232			15.68		102,722			9.30
Exercised		(23,659	)		10.22		(41,258	)		10.06		(17,876	)		9.68
Forfeited		(59,685	)		19.02		(1,320	)		10.53		(11,124	)		10.57
Outstanding, ending		661,771			13.89		662,506			13.82		608,852			13.27
Exercisable, ending		420,429					419,735					391,378
Weighted average fair value per option of options granted during the period	$	5.68				$	5.14				$	2.79

A further summary of options outstanding as of December 31, 2014 is presented below:

			Options Outstanding
					Weighted				Options Exercisable
					Average		Weighted				Weighted
					Remaining		Average				Average
Range of			Number		Contractual		Exercise		Number		Exercise
Exercise Prices			Outstanding		Life		Price		Exercisable		Price
$7.72	to	$8.93		51,990		5.89	$	8.13		29,140	$	8.19
$9.00	to	$10.24		198,499		5.82		9.22		131,420		9.21
$13.25	to	$16.85		237,893		4.92		15.85		169,514		15.94
$17.00	to	$18.60		114,424		7.05		17.33		31,390		17.86
$19.05	to	$20.63		30,265		1.04		19.10		30,265		19.10
$21.00	to	$22.00		28,700		0.16		21.28		28,700		21.28
				661,771						420,429

Stock purchase plan:

The Company’s Board of Directors and its stockholders adopted in October 2002 the QCR Holdings, Inc. Employee Stock Purchase Plan (the “Purchase Plan”). On May 2, 2012, the Company’s stockholders approved a complete amendment and restatement of the Purchase Plan. As of January 1, 2014, there were 254,851 shares of common stock available for issuance under the Purchase Plan. For each six-month offering period, the Board of Directors will determine how many of the total number of available shares will be offered. The purchase price is the lesser of 90% of the fair market value at the date of the grant or the investment date. The investment date, as established by the Board of Directors, is the date common stock is purchased after the end of each calendar quarter during an offering period. The maximum dollar amount any one participant can elect to contribute in an offering period is $7,500. Additionally, the maximum percentage that any one participant can elect to contribute is 8% of his or her compensation for the years ended December 31, 2014, 2013, and 2012. Information for the stock purchase plan for the years ended December 31, 2014, 2013, and 2012 is presented below:

	2014		2013		2012
Shares granted		24,811		27,415		29,671
Shares purchased		25,321		27,110		31,554
Weighted average fair value per share granted	$	2.37	$	2.10	$	1.71