STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

On March 27, 2018, the stockholders of Citizens Community Bancorp, Inc. approved the 2018 Equity Incentive Plan. The aggregate number of shares of common stock initially reserved and available for issuance under the 2018 Equity Incentive Plan was 350,000 shares. As of December 31, 2023, 290,187 restricted shares had been granted under this plan. This amount includes 11,834 shares of performance based restricted stock granted in 2019 and issued in January 2022 upon achievement of the performance criteria and completion of the three year performance period beginning in January 2019 and ending December 31, 2021. This amount also includes 18,551 shares of performance based restricted stock granted in 2020 and issued in January 2023 upon achievement of the performance criteria and completion of the three year performance period beginning in January 2020 and ending December 31, 2022. In addition, it includes 1,119 shares of performance based restricted stock granted in 2020 and 638 shares of performance based restricted stock granted in 2021 issued in August of 2022. Both of these issuances were approved by the Compensation Committee in accordance with plan documents and were to a former employee. As of December 31, 2023, no stock options had been granted under this plan.

In February 2008, the Company’s stockholders approved the Company’s 2008 Equity Incentive Plan for a term of 10 years. Due to the plan’s expiration, no new awards can be granted under this plan. As of December 31, 2023, there are no awarded unvested restricted shares and 54,000 awarded unexercised options remaining from the plan. Options granted to date under this plan vest pro rata over a five-year period from the grant date. Unexercised incentive stock options expire within 10 years of the grant date.

Net compensation expense related to restricted stock awards from these plans was $722 and $860 for the years ended December 31, 2023 and 2022, respectively.

Restricted Common Stock Awards


	Year ended			Year ended
	December 31, 2023			December 31, 2022

	Number of Shares	Weighted Average Grant Price		Number of Shares	Weighted Average Grant Price
Restricted Shares
Unvested and outstanding at beginning of year	75,626	$	12.30	75,630	$	11.20
Granted	50,606	12.36		43,465	13.99
Vested	(45,879)	12.24		(40,843)	12.12
Forfeited	(4,752)	11.78		(2,626)	11.04
Unvested and outstanding at end of period	75,601	$	12.41	75,626	$	12.30

The Company accounts for stock-based employee compensation related to the Company’s 2008 Equity Incentive Plan using the fair-value-based method. Accordingly, management records compensation expense based on the value of the award as measured on the grant date and then the Company recognizes that cost over the vesting period for the award. The compensation cost recognized for stock option-based employee compensation related to the 2008 plan for the year ended December 31, 2023 was $0 as all options have vested. The compensation cost recognized for stock option-based employee compensation related to the 2008 plan for the year ended December 31, 2022 was $3.

Common Stock Option Awards


	Option Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years	Aggregate Intrinsic Value
Year ended December 31, 2023
Outstanding at beginning of year	58,000	$	11.51

Exercised	(3,000)	9.21
Forfeited or expired	(1,000)	13.76
Outstanding at end of period	54,000	$	11.59	2.84	$	46
Exercisable at end of period	54,000	$	11.59	2.84	$	46

Year ended December 31, 2022
Outstanding at beginning of year	65,900	$	11.20

Exercised	(7,900)	8.95
Forfeited or expired	—	—
Outstanding at end of year	58,000	$	11.51	3.73	$	65
Exercisable at end of year	58,000	$	11.51	3.73	$	65

Information related to the 2008 Equity Incentive Plan during each period follows:


	Year ended December 31,		Year ended December 31,
	2023		2022
Intrinsic value of options exercised	$	2	$	38
Cash received from options exercised	$	28	$	71
Tax benefit realized from options exercised	$	—	$	—