Stock options and Restricted Stock Awards ("RSAs") have been issued to directors, officers and other management employees under the Corporation's 2024 Long-term Equity Incentive Plan, the 2019 Long-term Equity Incentive Plan, the Level One Bancorp, Inc. 2007 Stock Option Plan and the Equity Compensation Plan for Non-Employee Directors. The stock options, which have a ten year life, become 100 percent vested based on time ranging from one year to two years and are fully exercisable when vested. Option exercise prices equal the Corporation's common stock closing price on Nasdaq on the date of grant. The RSAs issued to employees and non-employee directors provide for the issuance of shares of the Corporation's common stock at no cost to the holder and generally vest after three years. The RSAs vest only if the employee is actively employed by the Corporation on the vesting date. For non-employee directors, the RSAs vest only if the non-employee director remains as an active board member on the vesting date. The RSAs for employees and non-employee directors are either immediately

The Corporation’s 2024 Employee Stock Purchase Plan ("ESPP") provides eligible employees of the Corporation an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000.

Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSAs and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation has been recognized as a component of salaries and employee benefits expense in the accompanying Consolidated Condensed Statements of Income.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Stock and ESPP Options
Pre-tax compensation expense	$	29	$	27	$	56	$	54
Income tax expense (benefit)	—		—		(23)		—
Stock and ESPP option expense, net of income taxes	$	29	$	27	$	33	$	54
Restricted Stock Awards
Pre-tax compensation expense	$	1,822	$	1,540	$	3,478	$	3,108
Income tax expense (benefit)	(430)		(307)		(794)		(635)
Restricted stock awards expense, net of income taxes	$	1,392	$	1,233	$	2,684	$	2,473
Total Share-Based Compensation
Pre-tax compensation expense	$	1,851	$	1,567	$	3,534	$	3,162
Income tax expense (benefit)	(430)		(307)		(817)		(635)
Total share-based compensation expense, net of income taxes	$	1,421	$	1,260	$	2,717	$	2,527

The grant date fair value of ESPP options was estimated to be approximately $30,000 at the beginning of the April 1, 2026 quarterly offering period. The ESPP shares were purchased and issued during the three months ended June 30, 2026, resulting in no unrecognized compensation expense related to ESPP options at June 30, 2026.


	Number of Shares	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2026	19,524	$	23.86


Exercised	(19,524)	$	23.86

Outstanding at June 30, 2026	—	$	—	0.00	$	—
Vested and Expected to Vest at June 30, 2026	—	$	—	0.00	$	—
Exercisable at June 30, 2026	—	$	—	0.00	$	—


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested RSAs at January 1, 2026	641,117	$	36.08
Granted	40,577	$	40.97
Vested	(83,518)	$	38.39
Forfeited	(3,550)	$	35.98
Unvested RSAs at June 30, 2026	594,626	$	36.10

As of June 30, 2026, unrecognized compensation expense related to RSAs was $9.5 million and is expected to be recognized over a weighted-average period of 1.4 years. The Corporation did not have any unrecognized compensation expense related to stock options as of June 30, 2026.