Under the 2018 Equity Incentive Plan, 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. On September 30, 2022, awards of 36,000 shares of restricted stock, in aggregate, were declared for certain executive officers of the Bank and the Company, which fully vested on November 30, 2022.

On January 31, 2023, awards of 27,000 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 Company, under the plan approved by its shareholders on April 27, 2023 (“2023 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 2023 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.

On June 30, 2023, an award of 25,252 shares of restricted stock was declared for a director and executive officer of the Bank and the Company, which fully vests on the anniversary of the award date.

The following table presents a summary of the status of the Company’s restricted shares as of September 30, 2023 and 2022.


	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2023	48,150	$	14.83
Granted	52,252		15.01
Vested	(13,650)		14.60
Forfeited	-		-
Non-vested at September 30, 2023	86,752	$	14.98


	Number of Shares Awarded		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2022	26,700	$	12.89
Granted	69,000		17.05
Vested	(9,150)		13.91
Forfeited	-		-
Non-vested at September 30, 2022	86,550	$	16.19

Restricted stock expense for the nine months ended September 30, 2023 and September 30, 2022 was $303,000 and $278,000, respectively. Expected future expenses relating to the non-vested restricted shares outstanding as of September 30, 2023 was approximately $960,000 over a weighted average period of 2.25 years.

The following table presents a summary of the status of the Company’s outstanding stock option awards as of September 30, 2023.


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

Outstanding at January 1, 2023	1,036,975	$	9.03-13.68	$	11.72

Options granted	-		-		-
Options exercised	(61,000)		9.03		9.03
Options forfeited	-		-		-
Options expired	-		-		-

Outstanding at September 30, 2023	975,975	$	10.55-13.68	$	11.89

As of September 30, 2023, stock options which were granted and were exercisable totaled 800,895. It is Company policy to issue new shares upon share option exercise.

Compensation expense for the nine months ended September 30, 2023 and September 30, 2022 was $99,000 and $180,000, respectively. Expected future compensation expense relating to the 175,080 shares of unvested options outstanding as of September 30, 2023 was $302,000 over a weighted average period of 3.12 years.