Note

15.

Stock-Based Compensation

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, 2017,

there were

351,205

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

event can the exercise price be less than the value of the common stock at the date of the grant for stock options. All options have a

-year life and will vest and become exercisable from

-to-

years after the date of the grant.

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

the years ended

December 31, 2017,

2016,

and

2015.

	2017		2016		2015

Stock options	$	554,435	$	424,904	$	393,114
Restricted stock awards		552,907		460,853		492,410
Stock purchase plan		79,694		61,417		55,945
	$	1,187,036	$	947,174	$	941,469

Stock options:

A summary of the stock option plans as of

December 31,

2017,

2016,

and

2015

and changes during the years then ended is presented below:

	December 31,
	2017					2016					2015
				Weighted					Weighted					Weighted
				Average					Average					Average
				Exercise					Exercise					Exercise
	Shares			Price		Shares			Price		Shares			Price

Outstanding, beginning		587,961		$	14.83		623,176		$	13.88		661,771		$	13.89
Granted		43,250			43.86		76,749			22.92		73,403			17.63
Exercised		(114,100	)		15.12		(111,423	)		14.97		(79,638	)		14.70
Forfeited		(3,557	)		26.74		(541	)		18.36		(32,360	)		20.69
Outstanding, ending		513,554			17.13		587,961			14.83		623,176			13.88

Exercisable, ending		354,269					385,372					405,832

Weighted average fair value per option granted	$	14.75				$	7.31				$	5.11

A further summary of options outstanding as of

December 31,

2017

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		27,850		3.06	$	8.09		27,850	$	8.09
$9.00	to	$9.30		148,755		2.77		9.22		147,955		9.22
$15.00	to	$16.85		90,668		4.59		15.63		79,369		15.64
$17.10	to	$18.00		132,816		6.57		17.31		81,521		17.26
$21.71	to	$31.53		70,215		8.08		22.63		16,273		22.64
$42.65	to	$48.50		43,250		9.20		43.86		1,301		42.75
				513,554						354,269

Restricted stock awards:

A summary of changes in the Company

’s nonvested restricted stock awards as of

December 31, 2017,

2016

and

2015

is presented below:

	December 31,
	2017			2016			2015

Outstanding, beginning	$	39,438		$	45,046		$	49,833
Granted		28,289			22,382			28,846
Released		(21,338	)		(27,490	)		(33,633	)
Forfeited		-			(500	)		-
Outstanding, ending	$	46,389		$	39,438		$	45,046

Weighted average fair value per share granted	$	44.44		$	22.64		$	17.80

The total grant-date fair value of restricted stock awards that were released during the years ended

December 31, 2017,

2016

and

2015

was

$925,735,

$632,255

and

$598,341,

respectively.

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, 2017,

there were

187,921

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

$10,000.

Additionally, the maximum percentage that any

one

participant can elect to contribute is

10%

of his or her compensation for the year ended

December 31, 2017.

The maximum percentage that any

one

participant could elect to contribute was

of his or her compensation for the years ended

December 31, 2016,

and

2015.

Information for the stock purchase plan for the years ended

December 31, 2017,

2016,

and

2015

is presented below:

	2017		2016		2015

Shares granted		12,414		18,711		23,408
Shares purchased		13,318		20,192		24,033
Weighted average fair value per share granted	$	6.42	$	3.28	$	2.39