Note 7. Employee Benefit Plans

401(k) Plan:

The Company provides a deferred salary reduction plan (“Plan”) under Section 401(k) of the Internal Revenue Code covering substantially all employees. After 90 days of service, the Company matches 100% of employee contributions up to 3% of compensation and 50% of employee contributions on the next 2% of compensation. The Company’s contribution to the Plan for the three and six month periods ending June 30, 2025, was $467 thousand and $1.0 million, respectively.  The Company’s contribution to the Plan for the three and six months ended June 30, 2024, was $455 thousand and $955 thousand, respectively.    

Equity Incentive Plans:

The Compensation Committee of the Company’s board of directors may grant or award eligible participants stock options, restricted stock, restricted stock units, stock appreciation rights, and other stock-based awards or any combination of awards (collectively referred to herein as "Rights"). At June 30, 2025, the Company had one active equity incentive plan available for future grants, the Omnibus Incentive Plan, which was approved on May 22, 2025, and has 1,690,000 Rights available for future grants or awards.

The Company’s 2015 Stock Incentive Plan expired on March 23, 2025, and has 5,945 Rights issued.

Stock Options:

A summary of the status of stock option plans is presented in the following table:

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Information pertaining to stock options outstanding at June 30, 2025, is as follows:

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The Company did not recognize any stock option-based compensation expense during the three and six months ended June 30, 2025, and 2024, respectively, as all stock options issued are fully vested, and no future compensation cost will be recognized related to nonvested stock-based compensation arrangements granted under the Plan.

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No stock options were exercised during the three months ended June 30, 2025.  Stock options of 4,203 shares were exercised during the six month period ended June 30, 2025.  No stock options were exercised during the three months ended June 30, 2024.  Stock options of 4,500 shares were exercised during the six month period ended June 30, 2024. The income tax benefit recognized for the exercise of options during the six months ended June 30, 2025, and 2024, was a benefit of $3 and $14 thousand, respectively.

No stock options were exercised during the three months ended June 30, 2025, and 2024. The intrinsic value of options exercised during the six months ended June 30, 2025, and 2024, was $77 thousand and $54 thousand, respectively. The aggregate intrinsic value of total options outstanding and exercisable options at June 30, 2025, was $111 thousand. Cash received from options exercised under all share-based payment arrangements for the six months ended June 30, 2025, was $63 thousand.

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Restricted Stock Awards:

A summary of the activity of the Company’s unvested restricted stock awards for the period ended June 30, 2025, is presented below:

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The Company measures the fair value of restricted stock awards based on the price of the Company’s common stock on the grant date, and compensation expense is recorded over the vesting period.  The compensation expense for restricted stock awards during the three and six months ended June 30, 2025, was $473 thousand and $1.2 million, respectively, and was $376 thousand and $894 thousand, during the three and six months ended June 30, 2024, respectively.  As of June 30, 2025, there was $3.8 million of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan.  The cost is expected to be recognized over a weighted average period of 2.61 years.  The grant-date fair value of restricted stock awards vested was $1.2 million for the six months ended June 30, 2025.

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Stock Appreciation Rights (“SARs”):

At June 30, 2025, there are no outstanding SARs.

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There was no SARs compensation expense for the three and six months ended June 30, 2025, and $22 thousand and ($34) thousand for the three and six months ended June 30, 2024.  The credit adjustment for the six month ended June 30, 2024, was due to adjustments related to the fair value evaluation of SARs.