The Company currently has one active stockholder-approved stock-based compensation plan, the Amended and Restated 2013 Equity Incentive Plan (the "2013 Plan"). The 2013 Plan permits the grant of restricted stock, restricted stock units, stock options, and stock appreciation rights. The equity incentive plan approved by stockholders in 2008 (the"2008 Plan" and together with the 2013 plan, the "Plans") expired in November 2018 and no further awards may be made under the 2008 Plan; provided, however, all awards outstanding under the 2008 Plan remain outstanding in accordance with their terms. Under the 2013 Plan, 181,750 shares of common stock were approved for awards for stock options and stock appreciation rights and 116,700 shares of common stock were approved for awards for restricted stock and restricted stock units.

As of September 30, 2024, on an adjusted basis, awards for stock options totaling 301,453 shares and awards for restricted stock totaling 167,114 shares of Company common stock have been granted, net of any forfeitures, to participants in the 2013 Plan and the 2008 Plan. Share-based compensation expense was $98 thousand and $291 thousand for the three and nine months ended September 30, 2024, and $88 thousand and $368 thousand for the three and nine months ended September 30, 2023, respectively.

All stock option awards granted under the 2008 Plan vested in 20 percent annual increments commencing one year from the grant date in accordance with the requirements of the 2008 Plan. The stock option awards granted to date under the 2013 Plan provide for immediate vesting of a portion of the award with the balance of the award vesting on the anniversary dates of the grant date in equal annual installments over a period of one-to-four years, subject to the continued service of the participant with the Company. All of the options granted under the 2008 Plan and the 2013 Plan are generally exercisable for a period of 10 years from the date of grant, subject to vesting.

The following is a summary of the Company’s stock option award activity during the three months ended September 30, 2024 (dollars in thousands, except per share amounts):


	Shares	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term in Years	Aggregate Intrinsic Value
Outstanding at July 1, 2024	85,512	$	33.00	5.29	$	855
Granted	—	—
Exercised	(11,864)	18.36



Outstanding at September 30, 2024	73,648	35.36		5.80	1,336
Exercisable	54,167	33.70		4.92	1,073
Expected to vest, assuming a 0% forfeiture rate over the vesting term	73,648	$	35.36	5.80	$	1,336

The following is a summary of the Company’s stock option award activity during the nine months ended September 30, 2024 (dollars in thousands, except per share amounts):


	Shares	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term in Years	Aggregate Intrinsic Value
Outstanding at January 1, 2024	80,735	$	32.28	5.36	$	603
Granted	6,469	39.89
Exercised	(13,299)	18.85

Expired	(257)	36.57
Outstanding at September 30, 2024	73,648	35.36		5.80	1,336
Exercisable	54,167	33.70		4.92	1,073
Expected to vest, assuming a 0% forfeiture rate over the vesting term	73,648	$	35.36	5.80	$	1,336

As of September 30, 2024, there was $144 thousand of total unrecognized compensation cost related to non-vested stock options granted under the Plans. This cost is expected to be recognized over the remaining weighted-average vesting period of approximately 2.0 years. The total intrinsic value of the shares exercised during the three and nine months ended September 30, 2024 was $294 thousand and $317 thousand, and for the three and nine months ended September 30, 2023 was $20 thousand and $408 thousand, respectively.

The fair value of each option is estimated as of the grant date using the Black-Scholes option-pricing model. The fair values of options granted during the nine months ended September 30, 2024 and 2023 were determined using the following weighted-average assumptions as of the grant date.


	Nine Months Ended September 30,
		2024			2023
Annual dividend yield		1.69		%	1.69		%
Expected volatility		28.15		%	28.15		%
Risk-free interest rate		4.06		%	3.60		%
Expected term		6.00 years			6.00 years
Weighted-average grant date fair value per option granted		$	11.64		$	11.33

The fair value of the restricted stock awards is equal to the fair value of the Company's common stock at the date of grant. Compensation expense is recognized over the vesting periods of the awards. The restricted stock awards granted under the 2008 Plan vested in 20% annual increments commencing one year from the grant date. The restricted stock awards granted to date under the 2013 Plan provide for immediate vesting of a portion of the award with the balance of the award vesting on the anniversary dates of the grant date in equal annual installments over a period of one-to-four years, subject to the continued service of the participant with the Company.

The following is a summary of the Company’s non-vested restricted stock award activity during the three months ended September 30, 2024:


	Shares	Weighted-Average Grant-Date Fair Value Per Share		Aggregate Intrinsic Value Per Share
Non-Vested at July 1, 2024	17,143	$	39.93
Granted	—	—
Vested	—	—
Forfeited	—	—
Non-Vested at September 30, 2024	17,143	$	39.93	$	52.51
Expected to vest assuming a 0% forfeiture rate over the vesting term	17,143	$	39.93	$	52.51


	Shares	Weighted-Average Grant-Date Fair Value Per Share		Aggregate Intrinsic Value Per Share
Non-Vested at January 1, 2024	15,967	$	39.20
Granted	8,048	$	39.89
Vested	(6,872)	$	38.19

Non-Vested at September 30, 2024	17,143	$	39.93	$	52.51
Expected to vest assuming a 0% forfeiture rate over the vesting term	17,143	$	39.93	$	52.51

As of September 30, 2024, there was $482 thousand of unrecognized compensation cost related to non-vested restricted stock granted under the Plans. This cost is expected to be recognized over the remaining weighted-average vesting period of approximately 2.0 years. The total fair value of shares that vested during the nine months ended September 30, 2024 and 2023 was $262 thousand and $370 thousand, respectively. The weighted average grant date fair value per share for restricted stock awards granted during the nine months ended September 30, 2024 and 2023 was $39.89 and $40.13, respectively.

The fair value of the 169,778 shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) trust was $9.1 million at September 30, 2024. ESOP compensation expense included in salaries and benefits was $189 thousand and $567 thousand for the three and nine months ended September 30, 2024, and $204 thousand and $612 thousand for the three and nine months ended September 30, 2023.