On May 16, 2023, the Company's shareholders approved the 2023 Stock Incentive Plan ("the 2023 Plan") which allows key employees and directors to increase their personal financial interest in the Company. The 2023 Plan permits the issuance of incentive stock options and non-qualified stock options and the award of common stock, restricted stock, and stock units. The plan authorizes the issuance of up to 250,000 shares of common stock. The 2023 Plan replaced the 2014 Stock Incentive Plan. To date, equity awards have only been issued in the form of restricted stock.

The Company periodically grants restricted stock to its directors, executive officers and certain non-executive officers. Restricted stock provides grantees with rights to shares of common stock upon completion of a service period or achievement of Company performance measures. During the restriction period, all shares are considered outstanding and dividends are paid to the grantee. Outside directors are periodically granted restricted shares which, beginning in 2023, vest over a period of one year. Prior to 2023 the vesting period for outside directors was typically less than nine months. Executive officers have been granted restricted shares which vest over a three year service period and restricted shares which vest based on meeting performance measures over a two year period. Certain non-executive officers also were granted restricted shares which vest over a three year service period.

The following table presents the activity for restricted stock awards for the years ended December 31, 2023 and 2022:


	Twelve Months Ended
	December 31,
	2023					2022
	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Nonvested, beginning of period		38,780		$	33.47		31,738		$	30.70
Granted		37,941			35.79		31,648			35.19
Vested		(17,402	)		33.26		(23,079	)		32.11
Forfeited		(2,405	)		35.40		(1,527	)		32.13
Nonvested, end of period		56,914		$	35.06		38,780		$	33.47

The Company recognizes compensation expense over the vesting period based on the fair value of the Company's stock on the grant date. Compensation expense was $1.2 million and $1.0 million during December 31, 2023 and 2022, respectively. The total grant date fair value of restricted stock which vested was $579 thousand and $741 thousand for the years ended December 31, 2023 and 2022, respectively. The total vest date fair value of restricted stock which vested was $609 thousand and $819 thousand for the years ended December 31, 2023 and 2022, respectively. Unrecognized compensation cost related to unvested restricted stock was $456 thousand at December 31, 2023. This amount is expected to be recognized over a weighted average period of two years. The Company's policy is to recognize forfeitures as they occur.