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Employee Benefits
6 Months Ended
Jun. 30, 2024
Employee Benefits [Abstract]  
Employee Benefits
Note 9:
Employee Benefits
 
401(k) Savings Plan
 
The Company has a retirement savings 401(k) plan covering substantially all employees.  Employees may contribute up to the maximum legal limit with the Company matching up to 5% of the employee’s salary.  Employer contributions charged to expense for the six months ended June 30, 2024 and 2023 totaled $233,000 and $209,000, respectively.
 
Stock-Based Compensation
 
The Company adopted an equity incentive plan (the “Incentive Plan”) in September 2018. The Incentive Plan permits the grant of restricted stock units and nonqualified incentive stock options.  The Incentive Plan will terminate in September 2028, if not extended. Compensation expense related to the Incentive Plan for the three months ended June 30, 2024 and 2023 totaled $637,000 and $621,000, respectively. Compensation expense related to the Incentive Plan for the six months ended June 30, 2024 and 2023 totaled $1.2 million and $1.1 million, respectively. There were 628,742 shares available for future grants as of June 30, 2024.
 
The Company grants to employees and directors restricted stock units (RSUs) which vest ratably over one, three, four, five, or eight years and stock options which vest ratably over four years.  All RSUs and stock options are granted at the fair value of the common stock at the time of the award. The RSUs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period.
 
The Company uses newly issued shares for granting RSUs and stock options.
 
The following table is a summary of the stock option activity under the Incentive Plan (dollar amounts in thousands, except per share data):

   
Options
   
Wgtd. Avg.
Exercise Price
   
Wgtd. Avg.
Remaining
Contractual Term
   
Aggregate
Intrinsic
Value
 
Six Months Ended June 30, 2024
                       
Outstanding at December 31, 2023
   
220,939
   
$
17.52
             
Options Granted
   
-
     
-
             
Options Exercised
   
(19,001
)
   
17.42
             
Options Forfeited
   
-
     
-
             
Outstanding at June 30, 2024
   
201,938
     
17.53
     
5.14
   
$
2,781,137
 
Exercisable at June 30, 2024
   
180,124
     
17.76
     
4.95
   
$
2,439,752
 

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value of each option is expensed over its vesting period.

There were no new grants for the three months ended June 30, 2024 and 2023.

The following table summarizes share information about RSUs for the six months ended June 30, 2024 and 2023:
 

 
Number of Shares
   
Wgtd. Avg.
Grant Date
Fair Value
 
Six Months Ended June 30, 2024
           
Outstanding at December 31, 2023
   
211,461
   
$
26.98
 
Shares granted
   
100,606
     
27.34
 
Shares vested
   
(51,636
)
   
27.06
 
Shares forfeited
   
-
   
-
 
End of the period balance
   
260,431
   
$
27.11
 

   
Number of Shares
   
Wgtd. Avg.
Grant Date
Fair Value
 
Six Months Ended June 30, 2023
           
Outstanding at December 31, 2022
   
112,591
   
$
19.15
 
Shares granted
   
163,311
     
29.76
 
Shares vested
   
(14,109
)
   
18.80
 
Shares forfeited
   
(3,250
)
   
28.03
 
End of the period balance
   
258,543
   
$
25.76
 
 
As of June 30, 2024, there was approximately $6.1 million of unrecognized compensation expense related to 260,431 unvested RSUs and $87,000 of unrecognized compensation expense related to 201,938 unvested and/or unexercised stock options. The stock option expense is expected to be recognized over a weighted average period of 0.92 years, and the RSU expense is expected to be recognized over a weighted average period of 3.42 years.

As of June 30, 2023, there was approximately $5.5 million of unrecognized compensation expense related to 258,543 unvested RSUs and $251,000 of unrecognized compensation expense related to 236,813 unvested and/or unexercised stock options.  The stock option expense is expected to be recognized over a weighted average period of 1.64 years, and the RSU expense is expected to be recognized over a weighted average period of 4.07 years.