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EMPLOYEE BENEFITS
12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
EMPLOYEE BENEFITS EMPLOYEE BENEFITS
Savings and Profit Sharing Plan
The Company maintains a Cash or Deferred Profit-sharing Section 401(k) Plan with contributions matching those by eligible employees for the first 4% of an employee’s contribution at the rate of $0.25 on the dollar. All employees who are over the age of 18 and completed three months of employment are eligible to participate in the plan. The Company made contributions of $302,000 and $233,000 for the years ended December 31, 2023 and 2022, respectively, to this plan. The 401(k) Plan includes a “safe harbor” provision and a discretionary retirement contribution. The Company made contributions of $485,000 and $404,000 for the “safe harbor” provision and discretionary retirement contribution for the years ended December 31, 2023 and 2022, respectively.
Equity Incentive Plan
Details of the restricted stock award and stock option grants under the 2021 Equity Incentive Plan are summarized for the years ended December 31, 2023 and 2022 as follows.
20232022
Number of Restricted Shares Granted40,22527,765
Weighted Average Grant Date Common Stock Price$22.11$25.29
Restricted Shares Market Value Before Tax$889,000$702,000
Number of Stock Options Granted78,975104,465
Stock Options Market Value Before Tax$358,000$510,000
Summary of Significant Assumptions for Newly Issued Stock Options
Expected Life in Years6.56.5
Expected Dividend Yield4.56%3.79%
Risk-free Interest Rate3.74%1.97%
Expected Volatility29.56%28.82%
Weighted Average Grant Date Fair Value$4.54$4.88
The Company recognizes expense over a five-year vesting period for the restricted stock awards and stock options. Stock-based compensation expense related to restricted stock awards and stock options was $1.1 million and $600,000 for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, total unrecognized compensation expense was
$505,000 and $430,000, respectively, related to stock options, and $1.4 million related to restricted stock awards for both periods. At December 31, 2023, the unrecognized compensation expense related to stock options and restricted stock is expected to be recognized over the weighted average remaining vesting period of 4.13 years. In conjunction with non-qualified stock options, the Company did not recognize any tax benefit due to exercises of non-qualified stock options for the year ended December 31, 2023, compared to a tax benefit of $2,000 recognized for the year ended December 31, 2022. In the prior year, there was an exercise of non-qualified stock options with a tax expense of $4,000 partially offset by the benefit of $2,000.
Intrinsic value represents the amount by which the fair value of the underlying stock at December 31, 2023 and 2022, exceeds the exercise price of the stock options. The intrinsic value of outstanding stock options was $335,000 and $25,000 at December 31, 2023 and 2022, respectively.
At December 31, 2023, there were 161,464 shares of common stock available and reserved under the 2021 Plan to be issued of which a maximum of 161,464 shares may be issued as stock options and 64,586 shares may be issued as restricted stock awards or units based on the terms of the Plan whereby the Share Limit is reduced, on a one-for-one basis, for each share of common stock subject to a stock option grant, and on a two and one-half-for-one basis for each share of common stock issued pursuant to restricted stock awards or units. At December 31, 2023, 40,225 restricted shares and 78,975 options have been granted under the 2021 Plan. At December 31, 2022, under the 2021 Plan, 333,335 or 133,334 shares,were available to be issued in connection with the exercise of stock options and restricted stock awards or units; and under the 2015 Plan, no shares were available to issue. The 2015 Plan shall remain in effect as long as any awards are outstanding, but as a result of the approval of the 2021 Plan, no more awards can be granted under the 2015 Plan.
The following table presents stock option data for the period indicated:
20232022
Number of SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual
Life in Years
Number of SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual
Life in Years
Outstanding Options at Beginning of Year283,748 $24.52 5.6207,641 $24.01 4.8
Granted78,975 21.93 104,465 25.31 
Exercised(18,000)20.63 (15,500)21.54 
Forfeited(7,279)24.95 (12,858)26.43 
Outstanding Options at End of Year337,444 24.11 5.6283,748 24.52 5.6
Exercisable Options at End of Year203,202 $24.46 3.6174,683 $24.42 3.5
Number of SharesWeighted Average Exercise PriceWeighted Average Remaining Service Period in Years
Nonvested Options December 31, 2021
20,626 $22.64 7.8
Granted104,465 $25.31 
Vested(9,354)$24.42 
Forfeited(6,672)$26.01 
Nonvested Options December 31, 2022109,065 $24.67 9.1
Granted78,975 21.93 
Vested(48,313)24.46 
Forfeited(5,485)24.37 
Nonvested Options at December 31, 2023134,242 $23.58 8.5
The following table presents restricted stock award data for the period indicated.
Number of SharesWeighted Average Grant Date Fair Value PriceWeighted Average Remaining Service Period in Years
Nonvested Restricted Stock at December 31, 202156,140 $23.90 5.3
Granted27,765 25.29 4.3
Vested(16,065)24.60 4.2
Forfeited(3,715)24.01 
Nonvested Restricted Stock at December 31, 202264,125 $24.32 4.3
Granted40,225 22.11 4.4
Vested(32,773)24.07 3.7
Forfeited(2,800)24.15 
Nonvested Restricted Stock at December 31, 202368,777 $23.16 3.8