Stock Based Compensation:

In April of 2022, the Company, with the approval of shareholders, created the 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan permits the award of up to one million shares to the Company’s directors and employees to attract and retain exceptional personnel, motivate performance and, most importantly, to help align the interests of the Company’s executives with those of the Company’s shareholders. The 2022 Plan replaced the 2017 Plan and the 2017 Plan has been sunset.  There were 59,122 service time based share awards and 150,468 performance based share awards granted under the 2022 Plan during the three month period ended March 31, 2026, as shown in the table below. The actual number of performance based shares issued will depend on the relative performance of the Company’s average return on equity compared to a group of peer companies over a three year vesting period, ending December 31, 2028. As of March 31, 2026, 142,675 shares were still available to be awarded from the 2022 Plan. 

In April 2026, the Company, with approval of shareholders, approved the 2026 Equity Incentive Plan (the "2026 Plan"). The 2026 Plan permits the award of up to one million shares to the Company's non-employee directors and employees. The 2026 Plan replaces the 2022 Plan; no further shares may be awarded under the 2022 Plan and any shares previously awarded under the 2022 Plan which are forfeited will not be available for reissuance. 

The restricted stock awards were granted with a fair value price equal to the market price of the Company’s common stock at the date of the grant. Expense recognized was $662,000 for the three months ended March 31, 2026. The expense recognized was $642,000 for the three months ended March 31, 2025. As of March 31, 2026, there was $2.1 million of total unrecognized compensation expense related to the nonvested shares granted under the 2022 Plan. The remaining cost is expected to be recognized over 2.9 years.

The following is the activity under the Plans during the three month period ended March 31, 2026.

The following is the activity under the Plans during the three month period ended March 31, 2025.

The 97,381 shares that vested during the three month period ended March 31, 2026 had a weighted average fair value of $13.59 per share.