The Company’s 2015 Equity Incentive Plan (the “Plan”) was adopted by the Company and approved by its shareholders in April 2015. The maximum number of shares of common stock that may be issued pursuant to stock-based awards under the Plan equals 1,314,000 shares, all of which may be subject to incentive stock option treatment. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have vesting periods ranging from 5 to 10 years and have 10-year contractual terms. Restricted stock awards vest under the period of restriction specified within their respective award agreements as determined by the Company. Forfeitures are recognized as they occur, subject to a 90-day grace period for vested options.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer group averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes in to account that the options are not transferable. The dividend yield is the total dividends per share paid during the period divided by the average of the Company's stock price on each date a grant was issued. The risk-free interest rate for the expected term of the option is based on U.S. Treasury yield curve in effect at the time of the grant.

A summary of stock option activity in the Plan during the six months ended June 30, 2025 and 2024 follows:


Six Months Ended June 30, 2025	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding at beginning of year		393,770		$	29.24		5.93	$	2,739
Granted		8,500			41.25
Exercised		(55,350	)		25.83
Forfeited		(6,600	)		24.55
Balance, June 30, 2025		340,320		$	30.19		6.11	$	4,171

Exercisable at end of period		199,680		$	29.17		4.89	$	2,651


Six Months Ended June 30, 2024	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding at beginning of year		465,680		$	28.12		5.46	$	2,782
Granted		59,000			28.86
Exercised		(24,650	)		22.88
Forfeited		(18,600	)		34.25
Balance, June 30, 2024		481,430		$	28.24		5.62	$	1,993

Exercisable at end of period		282,310		$	26.63		3.80	$	1,532

A summary of nonvested stock option activity in the Plan during the six months ended June 30, 2025 and 2024 follows:


Six Months Ended June 30, 2025	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested at beginning of year		161,280		$	6.32
Granted		8,500			10.65
Vested		(29,140	)		6.04
Balance, June 30, 2025		140,640		$	6.64


Six Months Ended June 30, 2024	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested at beginning of year		182,570		$	6.10
Granted		59,000			6.36
Vested		(25,950	)		5.56
Forfeited		(16,500	)		7.71
Balance, June 30, 2024		199,120		$	6.18

Information related to stock options in the Plan is as follows for the six months ended:


	June 30, 2025		June 30, 2024
Intrinsic value of options exercised	$	919	$	213
Cash received from options exercised		1,430		564
Net exercise of options		17		—
Weighted average fair value of options granted		10.65		6.36

A summary of restricted stock activity in the Plan during the six months ended June 30, 2025 and 2024 follows:


Six Months Ended June 30, 2025	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested at beginning of year		8,317		$	29.81
Granted		1,935			41.11
Vested		(1,272	)		31.97
Balance, June 30, 2025		8,980		$	31.93


Six Months Ended June 30, 2024	Number of Shares			Weighted-Average Grant Date Fair Value
Nonvested at beginning of year		15,390		$	28.87
Granted		2,388			30.49
Vested		(3,511	)		28.52
Forfeited		(334	)		33.43
Balance, June 30, 2024		13,933		$	29.12

Restricted stock granted to employees typically vests over five years, but vesting periods may vary. Compensation expense for these grants will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date.

As of June 30, 2025, there was $1,064 of total unrecognized compensation expense related to nonvested stock options granted under the Plan. The expense is expected to be recognized over a weighted-average period of 2.74 years.

The Company granted options and restricted stock under the Plan during the first six months of 2025 and 2024. Expense of $232 and $270 was recorded during the six months ended June 30, 2025 and 2024, respectively, which represents the fair value of shares, restricted stock and stock options vested during those periods.