Bandit like to growl and show teeth if I touch her while she has her bone. I can still take it from her. She does not nip or try to bite me. I even did a little test and literally annoyed her while she had it. Pulled her ears, put my fingers in her mouth, opened her mouth, picked her up, played with her paws. Still nothing but growls and teeth. I'm assuming thats a good thing since she knows not to bite or nip at me. So it's all good right? Nothing to worry about?

When she growls and bares teeth like that, she's sending you a warning. She may not have progressed past this display this time, but you may get to a point where she goes "oh, well since growling isn't working I'll just go right to biting". That's the reaction you absolutely don't want her to have. You do need to work on resource guarding, so work with her on trading for things. That way she gets accustomed to you taking things away (without ignoring her warning signals) and figures out that it's not going away permanently or there are other good things in store. But no matter what, don't ignore warning signals like that.

Okay perfect I thought it was okay she hasn't bitten me yet bit I will work on it

UPDATE
So she will show teeth if I touch her or growl if I try to move her. Now when I offer so peanut butter on a spoon she will happily give up the bone for the peanut butter. If I look at her she gives me that look. And sometimes if I try to pet her she covers her bone with her body. Is this still alright? Will she always be upset coming near her or will that pass if I keep it up?

Tony, for me, from your description this could be a tough call.  My first Sibe, I could take anything away from her for any reason (or no reason) but she'd talk at me (growl / grumble) to let me know she wasn't really happy 'bout it.  It almost appeared to be a case of "Well, okay, if you really want it ..."  Sasha, on the other hand has a full on growl and it means "It's mine, leave me alone or else ..."
For me, now, it's a no brainer - I knew one was basically playing with me and the other is quite serious.  
From what I read, you're going to have to make up your mind what it is you're seeing.  Is it a serious growl, will she follow up with teeth (a bite) or is it more of a play growl (where I said "Well, if you really want it ...")  The only times Misty became protective of her food was when she went hunting and then it was hers.

One thing I will stress, you don't want to teach her not to growl.  That's one of the worst mistakes someone can make.  That's the dog giving a warning that they're very unhappy and if you keep pushing it, they'll bite.  If you teach them not to growl, they don't growl - they just bite.

I just realized I said pretty much the same thing that Meredith had just a bit differently ... oh well.

Personally, since you're dealing with a pup, I'd think that you need to continue with the "swapping up" for a better treat, teach her that it's okay to give daddy what she has, she'll either get it back or get something better.