The Company awards select employees and directors certain forms of share-based incentives under the 2019 Incentive Plan. The 2019 Incentive Plan made 1,000,000 shares available to be issued to selected employees and directors of, and service providers to, the Company or its subsidiaries. The granting of awards under this plan can be in the form of stock options, stock appreciation rights, stock awards and cash incentive awards. The awards are granted by the compensation committee, which is comprised of members of the board of directors.

Total compensation cost that has been charged against income under the plans was $3.0 million, $2.5 million and $2.2 million for the years ended December 31, 2024, 2023, and 2022, respectively.

Restricted stock awards require certain service requirements and have a vesting period of four years. Compensation expense is recognized on a straight-line basis over the vesting period of the award based on the fair value of the stock at the date of grant.


	Number outstanding	Weighted average grant due fair value
Nonvested, beginning of year	341,014	$	24.25
Granted	208,657	26.10
Vested	(116,374)	23.51
Forfeited	(34,717)	24.80
Nonvested, end of year	398,580	$	25.39

As of December 31, 2024, there was $9.3 million of total unrecognized compensation cost related to nonvested restricted stock awards. The cost is expected to be recognized over a weighted average period of 3.04 years.

The total fair value of shares vested during the years ended December 31, 2024, 2023, and 2022 was $3.0 million, $2.1 million and $2.4 million, respectively.

The Company awards stock options to employees with an exercise price equal to the market price of the Company's common stock at the date of the grant and those awards, typically have a vesting period of four years and a ten-year contractual term.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Nasdaq ABA Community Bank Index. The Company has elected to use the practical expedient of one-half the weighted average time to vest plus the contractual life to estimate the expected term. The Company estimates the impact of forfeitures based on historical experience. Should the Company's current estimate change, additional expense could be recognized or reversed in future periods. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

The Company did not grant stock options in the years ended December 31, 2024 and 2023. The fair value of options granted during the year ended December 31, 2022 was determined using the following weighted-average assumptions as of the grant date.


	2024
	Shares	Weighted average exercise price		Weighted average remaining contractual life
Option outstanding, beginning of year	342,956	$	26.49
Options granted	—	N/A
Options exercised	(60,961)	21.51
Options forfeited	(2,602)	28.43
Options expired	(4,532)	28.59
Options outstanding, end of year	274,861	27.54		5.7 years
Options exercisable	182,190	27.08		4.6 years
Options vested and expected to vest	274,861	27.54		5.7 years

The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2024 was $0.1 million. As of December 31, 2024, there was $0.4 million of total unrecognized compensation cost related to nonvested stock options granted under our 2019 Incentive Plan. This cost is expected to be recognized over a period of 1.8 years.


(dollars in thousands)	2024		2023		2022
Cash received from options exercised	$	692	$	783	$	2,061
Intrinsic value from options exercised	195		230		943
Tax benefit from options exercised	41		48		198