Note 10.

Stock-Based Compensation

At June 30, 2018, Greene County Bancorp, Inc. had two stock-based compensation plans, which are described below.

Stock Option Plan

Greene County Bancorp, Inc. has a stock-based compensation plan (the “2008 Option Plan”) which allows the Company to issue up to 360,000 options and stock appreciation rights. In 2008, the Board of Directors granted 329,000 options and stock appreciation rights (in tandem) to buy stock under the 2008 Option Plan at an exercise price of $6.25, the fair value of the stock on that date. These options have a 10-year term and vested over a three year period upon meeting specific earnings performance goals.

A summary of the Company’s stock option activity and related information for its option plan for the years ended June 30, 2018, and 2017 is as follows:

	2018					2017
	Shares			Weighted Average Exercise Price Per Share		Shares			Weighted Average Exercise Price Per Share
Outstanding at beginning of year		37,770		$	6.25		64,770		$	6.25
Exercised		(37,770	)	$	6.25		(27,000	)	$	6.25
Outstanding at period end		-		$	-		37,770		$	6.25
Exercisable at period end		-		$	-		37,770		$	6.25

The intrinsic value of options both outstanding and exercisable was $0 at June 30, 2018, and $791,000 at June 30, 2017.

At June 30, 2018 and 2017, all outstanding options were fully vested, with no remaining compensation cost to be recognized. There were no stock options granted during the years ended June 30, 2018 or 2017. The total intrinsic value of the options exercised during the years ended June 30, 2018 and 2017 was approximately $997,000, and $339,000, respectively.

Phantom Stock Option Plan and Long-term Incentive Plan

The Greene County Bancorp, Inc. 2011 Phantom Stock Option and Long-term Incentive Plan (the “Plan”) was adopted effective July 1, 2011, to promote the long-term financial success of the Company and its subsidiaries by providing a means to attract, retain and reward individuals who contribute to such success and to further align their interests with those of the Company’s shareholders. At June 30, 2018 and 2017, the Plan had 5,800,000 and 3,600,000 options authorized, respectively, of which, 3,567,182 and 2,972,982 options had been granted to date, respectively. The Plan is intended to provide benefits to employees and directors of the Company or any subsidiary as designated by the Compensation Committee of the Board of Directors of the Company (“Committee”). A phantom stock option represents the right to receive a cash payment on the date the award vests. The participant receives an amount equal to the positive difference between the strike price on the grant date and the book value of a share of the Company stock on the determination date, which is the last day of the plan year that is the end of the third plan year after the grant date of the award, unless otherwise specified by the Committee. The strike price will be the price established by the Committee, which will not be less than 100% of the book value of a share on a specified date, as determined under generally accepted accounting principles (GAAP) as of the last day of the quarter ending on or immediately preceding the valuation date with adjustments made, in the sole discretion of the Committee, to exclude accumulated other comprehensive income (loss). The liability for the phantom stock option plan is re-measured at each reporting period based on the difference between the strike price and the current period end book value per share of the Company’s common stock, excluding accumulated other comprehensive income (loss).

A summary of the Company’s phantom stock option activity and related information for its option plan for the years ended June 30, 2018 and 2017 is as follows:

	2018			2017
Number of options outstanding at beginning of year		1,522,720			1,352,554
Options granted		594,200			578,200
Options forfeited		(27,000	)		-
Options paid in cash upon vesting		(455,760	)		(408,034	)
Number of options outstanding at period end		1,634,160			1,522,720

(In thousands)	2018		2017
Cash paid out on options vested	$	1,187	$	845
Compensation expense recognized		2,140		1,448

The total liability for the long-term incentive plan was $3.0 million and $2.0 million at June 30, 2018 and 2017, respectively, and is included in accrued expenses and other liabilities.