EQUITY INCENTIVE PLANS

On June 27, 2006, the Company’s stockholders approved the BankFinancial Corporation 2006 Equity Incentive Plan, which authorized the Human Resources Committee of the Board of Directors of the Company to grant a variety of cash- and equity-based incentive awards, including stock options, stock appreciation rights, restricted stock, performance shares and other incentive awards, to employees and directors aggregating up to 3,425,275 shares of the Company’s common stock. The Plan provided that no awards may be granted under the Plan after the ten-year anniversary of the Effective Date. Consequently, no further awards will be granted under this Plan.

During the year ended December 31, 2017, all 1,752,156 stock options were exercised. All stock options were exercised on a net settlement basis, using a portion of the shares obtained upon exercise to pay the exercise price of the stock option. The net settlements resulted in the issuance of 280,554 shares of the Company's common stock. Certain employees also chose to use a portion of the net shares received upon the exercise to pay required tax withholdings. This reduced the net shares issued by 82,528 shares to 198,026 shares. There are no stock options available for grant at December 31, 2018 or 2017.

For the years ended December 31, 2018 and 2017 the Company recognized no stock-based compensation expenses relating to the granting of stock options.

A summary of the activity in the stock option plan for 2017 follows:



Stock Options	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value ⁽¹⁾
Stock options outstanding at January 1, 2017	1,752,156		$	12.30	0.48	$	4,422
Stock options granted	—		—
Stock options exercised	(1,752,156	)	12.30
Stock options outstanding at December 31, 2017	—		$	—	0.00	$	—

(1) Stock option aggregate intrinsic value represents the number of shares subject to options multiplied by the difference (if positive) in the closing market price of the common stock underlying the options on the date shown and the weighted average exercise price.

The Human Resources Committee of the Board of Directors may grant shares of restricted stock to certain employees and directors of the Company. The awards generally vest annually over varying periods from three to five years and vesting is subject to acceleration in certain circumstances. The cost of such awards will be accrued ratably as compensation expense over such respective periods based on expected vesting dates. The Company recognized zero expense relating to the grant of shares of restricted stock during the years ended December 31, 2018 and 2017. As of December 31, 2018, there was no unrecognized compensation cost related to unvested shares of restricted stock. There are no shares of restricted stock available for grant at December 31, 2018.



Restricted Stock	Number of Shares ⁽¹⁾		Weighted Average Fair Value at Grant Date		Weighted Average Term to Vest (in years)	Aggregate Intrinsic Value ⁽²⁾
Shares outstanding at January 1, 2017	940		$	8.14	0.74	$	14
Shares granted	—		—
Shares vested	—		—
Shares forfeited	—		—
Shares outstanding at December 31, 2017	940		$	8.14	0.00	$	14
Shares granted	—		—
Shares vested	(694	)	8.14
Shares forfeited	(246	)	8.14
Shares outstanding at December 31, 2018	—		$	—	0.00	$	—


(1)	The end of period balances consist only of unvested shares.


(2)	Restricted stock aggregate intrinsic value represents the number of shares of restricted stock multiplied by the market price of the common stock underlying the outstanding shares on the date shown.