3.      STOCK PLAN AND STOCK-BASED COMPENSATION

Stock Option Plan - In July 2017, the shareholders of the Company approved the Riverview Bancorp, Inc. 2017 Equity Incentive Plan (“2017 Plan”). The 2017 Plan provides for the grant of incentive stock options, non-qualified stock options,

restricted stock and restricted stock units. The Company reserved 1,800,000 shares of its common stock for issuance under the 2017 Plan. At June 30, 2026, there were ­­­­1,300,987 shares available for grant under the 2017 Plan.

​

The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes stock option valuation model. The fair value of all awards is amortized on a straight-line basis over the requisite service periods, which are generally the vesting periods. The expected life of options granted represents the period of time that they are expected to be outstanding. The expected life is determined based on historical experience with similar options, considering the contractual terms and vesting schedules. Expected volatility is estimated at the date of grant based on the historical volatility of the Company's common stock. Expected dividends are based on dividend trends and the market value of the Company's common stock at the time of grant. The risk-free interest rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no stock options granted under the 2017 Plan during the three months ended June 30, 2026 and 2025. As of June 30, 2026 and 2025, there were no stock options outstanding.

​

The Company may grant restricted stock awards pursuant to the 2017 Plan on either a time-based or performance-based vesting schedule. Performance-based awards are subject to the attainment of predetermined performance metrics and all or a portion of such awards may be cancelled if the applicable performance metrics are not achieved. For performance-based awards, stock-based compensation expense is recognized based on the probability of achieving the performance conditions over the requisite service period and is adjusted in subsequent periods if the probability assessment changes. The fair value of restricted stock awards is measured as the closing market price of the Company’s common stock on the grant date. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period.

​

Stock-based compensation expense related to restricted stock awards was $89,000 and $109,000 for the three months ended June 30, 2026 and 2025, respectively. The decrease in stock-based compensation expense for the three month period ended June 30, 2026, compared to the prior-year period, was primarily due to the forfeiture of performance-based shares during the current quarter. Unrecognized stock-based compensation expense related to unvested restricted stock awards was $665,000 and $998,000 at June 30, 2026 and 2025, respectively, and is expected to be recognized over a weighted average remaining vesting period of 1.94 years and 2.25 years at June 30, 2026 and 2025, respectively.

​

The following tables present the activity related to restricted stock awards for the periods shown:

​

​

​