Note 17 - Stock based compensation

ESOP

In connection with the Association's mutual to stock conversion in October 2023, the Association established the Home Federal Savings and Loan Association of Grand Island Employee Stock Ownership Plan (“ESOP”) for all eligible employees. The ESOP purchased 330,465 shares of Company common stock in the Company’s initial public offering at $10.00 per share with the proceeds of a twenty-five (25) year loan from the Company in the amount of $3.3 million. The Association intends to make annual contributions to the ESOP that at a minimum will permit the ESOP to repay the principal and interest due on the ESOP debt. As the ESOP loan is repaid, shares of Company common stock pledged as collateral for the loan are released to Plan participants on the basis of each active participant’s proportional share of compensation. Participants vest 100% in their ESOP allocations after five years of service. In connection with the implementation of the ESOP, participants were given credit for past service with the Association for vesting purposes. Generally, participants will receive distributions from the ESOP upon separation from service. The plan reallocates any unvested shares of common stock forfeited upon termination of employment among the remaining participants in the plan.

ESOP compensation represents the average fair market value of the shares of Company common stock allocated or committed to be released as of that date. The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital. The ESOP compensation expense for the years ended March 31, 2026 and 2025 was $211,000 and $167,000.

The Company typically makes discretionary contributions to the ESOP each December in amounts sufficient to fund the required principal and interest payments on the loan. In December 2025, the Company made a contribution of $303,000 to the ESOP for this purpose.

Equity Incentive Plan

At the Company's annual meeting of stockholders held on November 26, 2024, stockholders approved the Central Plains Bancshares, Inc. 2024 Equity Incentive Plan (“2024 Equity Plan”), which provides for the granting of up to 578,313 shares (165,232 shares of restricted stock and 413,081 stock options) of the Company’s common stock pursuant to equity awards made under the 2024 Equity Plan.

Stock options granted under the 2024 Equity Plan generally vest in equal annual installments over a service period of five years beginning one year from the date of grant. The vesting of the options accelerates upon death, disability or an involuntary termination at or following a change in control of the Company. Stock options are generally granted at an exercise price equal to the fair value of the Company’s common stock on the grant date based on the closing market price of the Company's common stock on the date of grant, and have an expiration period of ten years. In November 2024, the Company granted 123,924 stock options under the 2024 Equity Plan. In January 2025, the Company granted 185,000 stock options under the 2024 Equity Plan. In May 2025, the Company granted 9,000 stock options under the 2024 Equity Plan. As of March 31, 2026, the Company has 93,157 shares available for future grants of stock options under the 2024 Equity Plan.

The weighted average grant date fair value of stock options granted during the year ended March 31, 2026 and 2025 was $5.86 and $5.61, respectively.

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, the difference between the Company's closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options.

Expected future expense relating to the non-vested options outstanding as of March 31, 2026 is $1.3 million over a weighted average period of 3.7 years.

Restricted shares granted under the 2024 Equity Plan generally vest in equal annual installments over a service period of five years beginning one year from the date of grant. The vesting of the awards accelerates upon death, disability or an involuntary termination at or following a change in control of the Company. The product of the number of shares granted and the grant date closing market price of the Company’s common stock determines the fair value of restricted shares under the 2024 Equity Plan. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period.

In November 2024, the Company granted 49,566 shares of restricted stock under the 2024 Equity Plan. In January 2025, the Company granted 79,500 shares of restricted stock under the 2024 Equity Plan. In May 2025, the Company granted 9,000 shares of restricted stock under the 2024 Equity Plan. As of March 31, 2026, the Company has 28,367 shares available for future grants of restricted stock under the 2024 Equity Plan.

Expected future expense relating to the non-vested restricted shares outstanding as of March 31, 2026, is $1.5 million over a weighted average period of 3.7 years.