We account for stock-based compensation under the fair value recognition provisions of ASC Topic 718 - Compensation - Stock Compensation. We recognize stock-based compensation cost over the award’s requisite service period on a straight-line basis for time-based restricted stock grants and performance-based restricted stock grants. We record forfeitures as they occur for all stock-based compensation.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Employee stock-based compensation expense
Pre-tax	$	261	$	270	$	792	$	495
Post-tax (1)	206		213		626		391
Director stock-based compensation expense
Pre-tax	29		66		132		243
Post-tax (1)	23		52		104		192

We had approximately $3,174,000 of unrecognized stock compensation expense at September 30, 2022 related to non-vested stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 2.2 years. We had approximately $62,000 of unrecognized director stock-based compensation expense at September 30, 2022 related to non-vested director stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 0.6 years.

Stock-based compensation cost for restricted stock awards, restricted stock units and performance stock units is measured based on the closing fair market value of our common stock on the date of grant, which vest in equal installments over the requisite service period of typically three years. Restricted stock awards granted to non-employee directors vest over a one-year period. Each restricted stock unit and performance stock unit represents our obligation to deliver to the holder one share of common stock upon vesting.

Performance stock units vest based on the Company's return on average equity compared to a defined group of peer companies. On the grant date, we issue the target number of performance stock units. They are subject to forfeitures if performance goals are not met. The actual number of performance stock units earned can vary from zero to 150 percent of the target for the 2022, 2021, and 2020 awards.

We did not grant shares of restricted common stock during the three months ended September 30, 2022. We granted 2,551 shares of restricted common stock during the three month period ended September 30, 2021, which had a weighted-average grant date fair value of $3.76 per share. We granted 907,907 and 290,577 shares of restricted common stock during the nine month periods ended September 30, 2022 and 2021, respectively, which had a weighted-average grant date fair value of $1.97 and $6.02 per share, respectively.


	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2021	336,596	$	6.99
Granted	907,907	1.97
Less: Forfeited	208,075	4.31
Less: Vested	112,722	7.09
Outstanding as of September 30, 2022	923,706	$	2.65

Stock option fair value was estimated on the grant date using the Black-Scholes-Merton formula. Stock options vest in equal installments over the requisite service period of typically three years. The following weighted-average assumptions were used to value the stock options granted:


	2022		2021
Expected annual dividend yield	—	%	0.65	%
Expected volatility	49.66	%	46.63	%
Risk-free interest rate	2.92	%	1.16	%
Expected term	6 years		6 years

Expected annual dividend yield for our options granted prior to the third quarter of 2021 is based on a quarterly dividend of $0.06 per share and the stock price on the grant date. The expected annual dividend yield for our options granted during and after the third quarter of 2021 is based on no dividends being paid in future quarters. The expected volatility is a historical volatility calculated based on the daily closing prices over a period equal to the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date. Expected term takes into account the three-year graded vesting term and the 10-year contractual term of the option.

We did not grant any stock options during the three months ended September 30, 2022. We granted 900,000 stock options during the three months ended September 30, 2021, which had a weighted average grant date fair value of $1.57 per share. We granted 635,643 and 1,054,707 stock options during the nine months ended September 30, 2022 and 2021, respectively, which had a weighted average grant date fair value of $0.86 and $1.61, per share, respectively.


	Number of Stock Options	Weighted Average Exercise Prices		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2021	1,147,215	$	4.80	9.49	$	792,000
Granted	635,643	1.70		—	—
Less: Forfeited	199,006	3.05		—	—
Less: Expired	—	—		—	—
Less: Exercised	—	—		—	—
Outstanding as of September 30, 2022	1,583,852	$	3.77	9.05	$	—

Vested as of September 30, 2022(1)	463,724	$	7.77	8.19	$	—
Exercisable as of September 30, 2022	411,090	$	6.36	8.44	$	—

(1) The vested shares are calculated based on all vested shares at September 30, 2022, inclusive of those that have since expired. The weighted average exercise prices and weighted-average remaining contractual term is calculated based on only vested shares that are outstanding and exercisable at September 30, 2022.