On June 3, 2025, the Corporation's shareholders approved the Corporation's 2025 Equity Incentive Plan (the "2025 Plan") which provides for the grant of stock-based awards to officers, employees and directors of the Corporation and the Bank. Compensation expense is recognized over the vesting period of the awards based on the fair value of the common stock at issue date. One grant has been issued under the 2025 Plan. The Corporation's prior plans shall remain in existence solely for the purpose of administering outstanding grants.

Pursuant to the 2025 Plan, the Corporation may make discretionary grants of restricted shares of the Corporation’s common stock to or for the benefit of employees selected to participate in the 2025 Plan, the chief executive officer and members of the Board of Directors. Awards are based on the performance, responsibility, and contributions of the individual and are targeted at an average of the peer group. The maximum number of shares of the Corporation’s common stock that may be awarded as restricted shares related to the 2025 Plan may not exceed 160,000, upon which time a new plan may be created.

During the six months ended June 30, 2025 and 2024, 35,156 and 13,457 shares, respectively, were re-issued from treasury to fund stock compensation. Effective for the 2024 fiscal year and thereafter, annual stock compensation is awarded the second month after the close of the fiscal year for the Corporation's employees and Chief Executive Officer. The expense related to these grants is recognized over a one year or a five year vesting period. Total expense related to stock compensation of $0.3 million was recognized during each of the three month periods ended June 30, 2025 and 2024, respectively. Total expense related to stock compensation of $0.6 million was recognized during each of the six month periods ended June 30, 2025 and 2024, respectively.


	Shares	Weighted–Average Grant Date Fair Value
Nonvested at April 1, 2025	71,436	$48.29
Granted	1,284	$46.75
Vested	(273)	$43.83
Forfeited or cancelled	—
Nonvested at June 30, 2025	72,447	$48.28


	Shares	Weighted–Average Grant Date Fair Value
Nonvested at January 1, 2025	49,703	$46.67
Granted	35,156	$50.45
Vested	(12,412)	$47.98
Forfeited or cancelled	—
Nonvested at June 30, 2025	72,447	$48.28

As of June 30, 2025, there was $2.8 million of total unrecognized compensation cost related to nonvested shares granted under the Corporation's equity incentive plans. The cost is expected to be recognized over a weighted-average period of 3.29 years. The total fair value of shares vested was $0.6 million for the each of the six month periods ended June 30, 2025 and 2024, respectively.