The Company has unvested restricted stock outstanding under the 2022 Bankwell Financial Group, Inc. Stock Plan, or the “2022 Plan”. All equity awards made under the 2022 Plan are made by means of an award agreement, which contains the specific terms and conditions of the grant. Although the 2022 Plan authorizes multiple forms of equity grants, to date, all equity awards under the 2022 Plan have been in the form of restricted stock. At March 31, 2026, there were 197,746 shares reserved for future issuance under the 2022 Plan.

Restricted Stock: Restricted stock provides grantees with rights to shares of common stock upon completion of a service period. Shares of unvested restricted stock are considered participating securities. Restricted stock awards generally vest over one to five years.


	Three Months Ended March 31, 2026
	Number of Shares		Weighted Average Grant Date Fair Value
Unvested at beginning of period	206,822	(1)	$	31.74
Granted	76,845	(2)	50.38
Vested	(81,011)	(3)	49.89
Forfeited	(291)		47.88
Unvested at end of period	202,365

The Company's restricted stock expense for the three months ended March 31, 2026 and March 31, 2025 was $1.1 million and $0.2 million, respectively. At March 31, 2026, there was $6.8 million of unrecognized stock compensation expense for restricted stock, expected to be recognized over a weighted average period of 1.6 years.

Performance Based Restricted Stock: The Company has 72,875 shares of performance based restricted stock outstanding as of March 31, 2026 pursuant to the Stock Plan. Awards granted prior to 2025 generally vest over a three year service period, provided certain performance metrics are met. In 2025, the Company transitioned to three-year cliff vesting for performance-based awards. The share quantity that ultimately vests can range between 0% and 200% (150% for awards granted after 2023), which is dependent on the degree to which the performance metrics are met. The Company records an expense over the vesting period based on (a) the probability that the performance metrics will be met and (b) the fair market value of the Company’s stock at the date of the grant.