The Company maintains certain share-based compensation plans, approved by the Company’s shareholders, which are administered by the Management Development and Compensation Committee (the “MD&C Committee”) of the Board. The share-based compensation plans were established to allow for the granting of compensation awards to attract, motivate and retain employees, executive officers and non-employee directors who contribute to the long-term growth and profitability of the Company and to give such persons a proprietary interest in the Company, thereby enhancing their personal interest in the Company’s success.

The Company granted restricted stock awards (“RSAs”), restricted stock unit awards (“RSUs”), and performance-based restricted stock units (“PSUs”) during the six months ended June 30, 2026 as follows:


	Number of Underlying Shares		Weighted Average Grant Date Fair Value
RSAs		15,384	$	35.10
RSUs		96,180	$	27.94
PSUs		39,048	$	27.52

The grant-date fair value for the RSAs granted to the directors during the six months ended June 30, 2026 was equal to the closing market price of our common stock on the date of grant, and will vest on the day before the 2027 annual shareholder’s meeting. The grant-date fair value for the RSUs and PSUs granted during the six months ended June 30, 2026 was equal to the closing market price of our common stock on the date of grant reduced by the present value of the dividends expected to be paid on the underlying shares. The RSUs and PSUs granted during the six months ended June 30, 2026 will generally vest on the third anniversary of the grant date assuming the recipient’s continuous service to the Company. Restricted stock awards granted to the directors and RSUs and PSUs granted to employees do not have rights to dividends or dividend equivalents.

The Company amortizes the expense related to share-based compensation awards over the vesting period. Share-based compensation expense is recorded as a component of salaries and employee benefits in the consolidated statements of operations for awards granted to management and as a component of other noninterest expense for awards granted to directors. The share-based compensation expense included in the consolidated statements of operations, is as follows (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Salaries and employee benefits	$	943	$	713	$	1,795	$	1,166
Other noninterest expense		327		241		378		294
Total share-based compensation expense	$	1,270	$	954	$	2,173	$	1,460

Income tax benefit realized for compensation costs	$	652	$	118	$	831	$	456

At June 30, 2026, there was $7.6 million of unrecognized compensation expense related to unvested restricted stock awards and restricted stock units that is expected to be recognized over a weighted average period of 2.06 years.