Note 15 - Stock-Based Compensation

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 15.     Stock-Based Compensation

Stock-based compensation expense was reflected in the consolidated financial statements as follows for the years ended December 31, 2015, 2014, and 2013.

	2015		2014		2013
Stock option and incentive plans	$	885,524	$	832,845	$	734,827
Stock purchase plan		55,945		58,774		57,452
	$	941,469	$	891,619	$	792,279

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”). 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”). 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 250,000, 350,000 and 350,000 shares of common stock, respectively, 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 these plans.

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, 2015, there were 89,073 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 3-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, 2015, 2014, and 2013 and changes during the years then ended is presented below:

	December 31,
	2015				2014				2013
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding, beginning		661,771	$	13.89		662,506	$	13.82		608,852	$	13.27
Granted		73,403		17.63		82,609		17.11		96,232		15.68
Exercised		(79,638)		14.70		(23,659)		10.22		(41,258)		10.06
Forfeited		(32,360)		20.69		(59,685)		19.02		(1,320)		10.53
Outstanding, ending		623,176		13.88		661,771		13.89		662,506		13.82
Exercisable, ending		405,832				420,429				419,735
Weighted average fair value per option of options granted during the period	$	5.11			$	5.68			$	5.14

A further summary of options outstanding as of December 31, 2015 is presented below:

				Options Outstanding
										Options Exercisable
Range of Exercise Prices				Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	7.99	to	$8.93		45,165		4.90	$	8.19		34,290	$	8.19
$	9.00	to	$9.30		179,547		4.82		9.21		149,193		9.21
$	13.25	to	$16.85		214,585		4.10		15.88		170,335		15.88
$	17.00	to	$18.48		165,629		7.94		17.42		35,764		17.42
$	19.05	to	$21.71		18,250		1.09		19.05		16,250		19.05
					623,176						405,832

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, 2015, there were 230,040 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, 2015, 2014, and 2013. Information for the stock purchase plan for the years ended December 31, 2015, 2014, and 2013 is presented below:

	2015		2014		2013
Shares granted		23,408		24,811		27,415
Shares purchased		24,033		25,321		27,110
Weighted average fair value per share granted	$	2.39	$	2.37	$	2.10