3. STOCK PLANS AND STOCK-BASED COMPENSATION

In July 2003, shareholders of the Company approved the adoption of the 2003 Stock Option Plan (“2003 Plan”). The 2003 Plan was effective in July 2003 and expired in July 2013. Accordingly, no further option awards may be granted under the 2003 Plan; however, any awards granted prior to their respective expiration dates remain outstanding subject to their terms. Each option granted under the 2003 Plan has an exercise price equal to the fair market value of the Company’s common stock on the date of the grant, a maximum term of ten years and a vesting period from zero to five years.

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 has reserved 1,800,000 shares of its common stock for issuance under the 2017 Plan. The 2003 Plan and the 2017 Plan are collectively referred to as “the Stock Option Plans”.

As of December 31, 2019 and 2018, the Trust Company had 1,000 and 2,500, respectively, of Trust Company stock options outstanding which had been granted to the President and Chief Executive Officer of the Trust Company. During the three months ended December 31, 2019, 1,500 Trust Company stock options were exercised. During both the three and nine months ended December 31, 2019 and 2018, the Trust Company incurred $11,000 and $33,000, respectively, of stock-based compensation expense related to these options.

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, giving consideration to 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 Stock Option Plan during the three and nine months ended December 31, 2019 and 2018.

As of December 31, 2019, all outstanding stock options were fully vested and there was no remaining unrecognized compensation expense under the Stock Option Plans. Unrecognized compensation expense related to the Trust Company stock options totaled $55,000 as of December 31, 2019. There was no stock-based compensation expense related to stock options for the three and nine months ended December 31, 2019 and 2018 under the Stock Option Plans.

The following table presents the activity related to stock options under the Stock Option Plans for the periods shown:


	Nine Months Ended			Nine Months Ended
	December 31, 2019			December 31, 2018
		Weighted			Weighted
		Average			Average
	Number of	Exercise		Number of	Exercise
	Shares	Price		Shares	Price
Balance, beginning of period	101,332	$	3.26	141,365	$	3.77
Options exercised	(58,000)		3.69	(28,533)		5.30
Expired	—		—	(2,500)		8.12
Balance, end of period	43,332		2.69	110,332	$	3.27

The following table presents information on stock options outstanding under the Stock Option Plans as of December 31, 2019 and 2018:


	2019		2018
Stock options fully vested and expected to vest:
Number		43,332		110,332
Weighted average exercise price	$	2.69	$	3.27
Aggregate intrinsic value (1)	$	239,000	$	442,000
Weighted average contractual term of options (years)		3.05		2.44
Stock options fully vested and currently exercisable:
Number		43,332		110,332
Weighted average exercise price	$	2.69	$	3.27
Aggregate intrinsic value (1)	$	239,000	$	442,000
Weighted average contractual term of options (years)		3.05		2.44

(1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price) that would have been received by the option holders had all option holders exercised. This amount changes based on changes in the market value of the Company’s stock.

The total intrinsic value of stock options exercised under the Stock Option Plans was $238,000 and $118,000 for the nine months ended December 31, 2019 and 2018, respectively.

During the nine months ended December 31, 2019, the Company granted 82,673 shares of restricted stock pursuant to the 2017 Plan. The fair value of restricted stock awards is equal to the fair value of the Company’s stock on the date of grant. Stock-based compensation expense is recorded over the requisite service period. Stock-based compensation related to restricted stock grants was $57,000 and $284,000 for the three and nine months ended December 31, 2019. There was no stock-based compensation related to restricted stock for the three and nine months ended December 31, 2018. The unrecognized stock-based compensation related to restricted stock was $406,000 at December 31, 2019. The weighted average vesting period for the restricted stock was 1.98 years at December 31, 2019.

The following table presents the activity related to restricted stock as of December 31, 2019:


	Time Based			Performance Based			Total
		Weighted			Weighted			Weighted
	Number of	Average		Number of	Average		Number of	Average
	Unvested	Market		Unvested	Market		Unvested	Market
	Shares	Price		Shares	Price		Shares	Price
Balance, beginning of period	—	$	—	—	$	—	—	$	—
Granted	49,298		8.35	33,375		8.35	82,673		8.35
Forfeited	—		—	—		—	—		—
Vested	—		—	—		—	—		—
Balance, end of period	49,298	$	8.35	33,375	$	8.35	82,673	$	8.35