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, 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, 2018, there were 302,066 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 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.

Stock-based compensation expense was reflected in the Consolidated Financial Statements as follows for the years ended December 31, 2018, 2017, and 2016.


	2018		2017		2016
Stock options	$	471,849	$	554,435	$	424,904
Restricted stock awards		856,731		552,907		460,853
Stock purchase plan		114,766		79,694		61,417
	$	1,443,346	$	1,187,036	$	947,174

Note 15. Stock-Based Compensastion (continued)

Stock options:

A summary of the stock option plans as of December 31, 2018, 2017, and 2016 and changes during the years then ended is presented below:


	December 31,
	2018				2017				2016
			Weighted				Weighted				Weighted
			Average				Average				Average
			Exercise				Exercise				Exercise
	Shares		Price		Shares		Price		Shares		Price
Outstanding, beginning		513,554	$	17.13		587,961	$	14.83		623,176	$	13.88
Granted		16,315		44.02		43,250		43.86		76,749		22.92
Exercised		(60,127)		13.56		(114,100)		15.12		(111,423)		14.97
Forfeited		(170)		16.81		(3,557)		26.74		(541)		18.36
Outstanding, ending		469,572		18.52		513,554		17.13		587,961		14.83

Exercisable, ending		358,270				354,269				385,372

Weighted average fair value per option granted	$	14.68			$	14.75			$	7.31

A further summary of options outstanding as of December 31, 2018 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	24,175	2.07	$	8.10	24,175	$	8.10
$9.00 to $9.30	121,724	2.10		9.21	121,724		9.21
$15.08 to $16.13	74,703	4.24		15.63	72,303		15.64
$17.10 to $18.00	125,137	5.56		17.31	99,573		17.29
$21.71 to $31.53	66,291	7.11		22.92	29,633		22.64
$42.65 to $48.50	57,542	8.46		43.94	10,862		43.79
	469,572				358,270

Restricted stock awards:

A summary of changes in the Company’s nonvested restricted stock awards as of December 31, 2018, 2017 and 2016 is presented below:


	December 31,
	2018		2017		2016
Outstanding, beginning		46,389		39,438		45,046
Granted*		37,315		28,289		22,382
Released		(19,605)		(21,338)		(27,490)
Forfeited		—		—		(500)
Outstanding, ending		64,099		46,389		39,438

Weighted average fair value per share granted	$	43.50	$	44.44	$	22.64

* Includes 22,660 of restricted stock awards and 14,655 of restricted stock units.

The total grant value of restricted stock awards that were released during the years ended December 31, 2018, 2017 and 2016 was $622 thousand, $509 thousand and $474 thousand, respectively.

Note 15. Stock-Based Compensation (continued):

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, 2018, there were 175,507 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 85% 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, 2018 and 2017 and 8% for the year ended December 31, 2016. Information for the stock purchase plan for the years ended December 31, 2018, 2017, and 2016 is presented below:


	2018		2017		2016
Shares granted		17,305		12,414		18,711
Shares purchased		15,528		13,318		20,192
Weighted average fair value per share granted	$	6.63	$	6.42	$	3.28