Note

15.

Stock-Based Compensation

Stock-based compensation expense was reflected in the consolidated financial statements as follows for the years ended

December

31,

2016,

2015,

and

2014.

	2016		2015		2014

Stock option and incentive plans	$	885,757	$	885,524	$	832,845
Stock purchase plan		61,417		55,945		58,774
	$	947,174	$	941,469	$	891,619

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”). The Company’s Board of Directors adopted in

February

2016,

and the stockholders approved in

May

2016,

the QCR Holdings, Inc.

2016

Equity Incentive Plan

(“2016

Equity Incentive Plan”). Up to

250,000,

350,000,

and

400,000

shares of common stock, respectively,

may

be issued to employees and directors of the Company and its subsidiaries pursuant to equity incentive awards granted under these plans.

The

2008

Equity Incentive Plan, the

2010

Equity Incentive Plan, the

2013

Equity Incentive Plan, and the

2016

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,

2016,

there were

412,658

remaining shares of common stock available for grant under the stock option plans; however, such additional shares

may

be issued only under the

2016

Equity Incentive Plan.

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

-year life and will vest and become exercisable from

-to-

years after the date of the grant. Only nonqualified stock options have been issued to date.

A summary of the stock option plans as of

December

31,

2016,

2015,

and

2014

and changes during the years then ended is presented below:

	December 31,
	2016					2015					2014
				Weighted					Weighted					Weighted
				Average					Average					Average
				Exercise					Exercise					Exercise
	Shares			Price		Shares			Price		Shares			Price

Outstanding, beginning		623,176		$	13.88		661,771		$	13.89		662,506		$	13.82
Granted		76,749			22.92		73,403			17.63		82,609			17.11
Exercised		(111,423	)		14.97		(79,638	)		14.70		(23,659	)		10.22
Forfeited		(541	)		18.36		(32,360	)		20.69		(59,685	)		19.02
Outstanding, ending		587,961			14.83		623,176			13.88		661,771			13.89

Exercisable, ending		385,372					405,832					420,429

Weighted average fair value per option of options granted during the period	$	7.31				$	5.11				$	5.68

A further summary of options outstanding as of

December

31,

2016

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

$7.99	to	$8.93		35,040		3.84	$	8.18		35,040	$	8.18
$9.00	to	$9.30		160,707		3.82		9.22		147,200		9.22
$15.00	to	$16.85		168,164		3.64		15.69		147,291		15.69
$17.10	to	$18.00		145,551		7.56		17.25		55,341		17.25
$21.71	to	$31.53		78,499		9.09		21.71		500		21.71
				587,961						385,372

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

2012,

the Company’s stockholders approved a complete amendment and restatement of the Purchase Plan. As of

January

2016,

there were

206,632

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

of his or her compensation for the years ended

December

31,

2016,

2015,

and

2014.

Information for the stock purchase plan for the years ended

December

31,

2016,

2015,

and

2014

is presented below:

	2016		2015		2014

Shares granted		18,711		23,408		24,811
Shares purchased		20,192		24,033		25,321
Weighted average fair value per share granted	$	3.28	$	2.39	$	2.37