The Company, under the plan approved by its shareholders on April 28, 2011 (“2011 Stock Plan”), authorized the issuance of up to 900,000 shares of common stock of the Company pursuant to grants of stock options. Employees and directors of the Company and the Bank were eligible to participate in the 2011 Stock Plan. All stock options were granted in the form of either "incentive" stock options or "non-qualified" stock options. Incentive stock options have certain tax advantages that must comply with the requirements of Section 422 of the Internal Revenue Code. Only employees were permitted to receive incentive stock options. No awards were permitted to be granted under this Plan after April 26, 2021 pursuant to the terms of the 2011 Equity Incentive Plan (defined below).

The Company, under the plan approved by its shareholders on April 26, 2018 (“2018 Equity Incentive Plan”), authorized the issuance of up to 1,000,000 shares of common stock of the Company pursuant to grants of stock options, restricted stock awards, restricted stock units, and performance awards. Employees and directors of the Company and the Bank are eligible to participate in the 2018 Equity Incentive Plan. All stock options will be granted in the form of either "incentive" stock options or "non-qualified" stock options. Incentive stock options have certain tax advantages that must comply with the requirements of Section 422 of the Internal Revenue Code. Only employees are permitted to receive incentive stock options.

Under the 2018 Equity Incentive Plan, on February 10, 2021, grants of 66,000 options, in aggregate, were declared for members of the Board of Directors of the Bank and the Company which vest over a 5-year period, commencing on the first anniversary of the grant date. The exercise price was recorded as of close of business on February 10, 2021. On February 10, 2021, awards of 26,400 shares of restricted stock, in aggregate, were declared for members of the Board of Directors of the Bank and the Company, which vest over a 4-year period, commencing on the anniversary of the award date. On February 19, 2021, an award of 300 shares of restricted stock was declared for an officer of the Bank and the Company, which vests over a 2-year period, commencing on the anniversary of the award date.

Further, on April 26, 2021, grants of 6,800 options, in aggregate, were declared for certain officers of the Bank and the Company, which vest over a 5-year period commencing on the first anniversary of the grant date. The exercise price was recorded as of close of business on April 26, 2021.

On January 12, 2022, awards of 33,000 shares of restricted stock, in aggregate, were declared for members of the Board of Directors of the Bank and the Company, which vest over a 4-year period, commencing on the anniversary of the award date.

The following table presents a summary of the status of the Company’s restricted shares as of June 30, 2022 and 2021.


	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2022	26,700	$	12.89
Granted	33,000		16.00
Vested	(6,750)		12.89
Forfeited	-		-
Non-vested at June 30, 2022	52,950	$	14.83

Restricted stock expense for the six months ended June 30, 2022 and June 30, 2021 was $54,000 and $141,000, respectively. Expected future expenses relating to the non-vested restricted shares outstanding as of June 30, 2022 was approximately $640,000 over a weighted average period of 3.23 years.

The following table presents a summary of the status of the Company’s outstanding stock option awards as of June 30, 2022.


	Number of Option Shares		Range of Exercise Prices		Weighted Average Exercise Price

Outstanding at January 1, 2022	1,194,425	$	9.02-13.68	$	11.64

Options granted	-		-		-
Options exercised	(19,700)		10.55-13.68		11.92
Options forfeited	-		-		-
Options expired	-		-		-

Outstanding at June 30, 2022	1,174,725	$	9.02-13.68	$	11.63

As of June 30, 2022, stock options which were granted and were exercisable totaled 871,985. It is Company policy to issue new shares upon share option exercise.

Compensation expense for the six months ended June 30, 2022 and June 30, 2021 was $88,000 and $110,000, respectively. Expected future compensation expense relating to the 302,740 shares of unvested options outstanding as of June 30, 2022 was $500,000 over a weighted average period of 4.12 years.