The Company has three stock-based compensation plans currently in effect as of September 30, 2021, as described further below. Total compensation cost charged against income for these plans was $167 thousand and $403 thousand for the three and nine months ended September 30, 2021, and total compensation cost charged against income for these plans was $249 thousand and $965 thousand for the three and nine months ended September 30, 2020, respectively.

2005 Plan: In 2005, the Board of Directors and shareholders of the Bank approved a stock option plan for the benefit of directors and employees of the Bank (the “2005 Plan”). The 2005 Plan was assumed by the Company in 2016 at the time of the bank holding company reorganization. Under the 2005 Plan, the Bank was authorized to grant options to purchase up to 770,000 shares of the Company’s common stock.

The exercise prices of the options may not be less than 100% of the fair value of the Company’s common stock at the date of grant. The options, when granted, vest either immediately or ratably over five years from the date of the grant and expire after ten years if not exercised. The 2005 Plan expired in 2015 and no future grants can be made under the 2005 Plan.

A summary of the transactions under the 2005 Plan for the nine months ended September 30, 2021 is as follows:



($ in thousands, except per share data)	Number of Options Outstanding	Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding, as of January 1, 2021	100,000	$	5.77
Options granted	—	—
Options exercised	(40,000)	1.60
Options forfeited	—	—
Options expired	—	—
Outstanding, as of September 30, 2021	60,000	6.28		$	241
Fully vested and expected to vest	60,000	6.28		241
Vested	60,000	$	6.28	$	241



($ in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Intrinsic value of options exercised	$	—	$	—	$	174	$	370
Cash received from option exercises	$	—	$	—	$	64	$	63
Tax benefit realized from option exercised	$	—	$	—	$	20	$	17

The weighted average remaining contractual term of stock options outstanding under the 2005 Plan as of September 30, 2021 was 1.98 years. All stock options that are outstanding under the 2005 Plan were fully vested and exercisable as of September 30, 2021.

2010 Plan: In 2010, the Board of Directors of the Bank approved an equity incentive plan for granting stock options and restricted stock awards to key employees, officers, and non-employee directors of the Bank (the “2010 Plan”). In 2013, the 2010 Plan was amended and approved by the shareholders to increase the number of shares authorized to be issued from 1,350,000 shares of common stock to 2,500,000 shares of common stock. The 2010 Plan was assumed by the Company in 2016 at the time of the bank holding company reorganization.

The exercise prices of stock options granted under the plan may not be less than 100% of the fair value of the Company’s stock at the date of grant. The options, when granted, vest ratably over five years from the date of the grant and expire after ten years if not exercised. The 2010 Plan expired in August 2020 and no future grants can be made under the 2010 Plan.

Restricted stock awards issued under the 2010 Plan may or may not be subject to vesting provisions. Owners of the restricted stock awards shall have all rights of a shareholder including the right to vote the shares and to all dividends (cash or stock). Compensation expense related to restricted stock awards will be recognized over the vesting period of the awards based on the fair value of the Company’s common stock at the issue date.

A summary of stock options outstanding under the 2010 Plan for the nine months ended September 30, 2021 is as follows:



($ in thousands, except per share data)	Number of Options Outstanding	Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding, as of January 1, 2021	220,000	$	7.75
Options granted	—	—
Options exercised	(10,000)	2.53
Options forfeited	—	—
Options expired	—	—
Outstanding, as of September 30, 2021	210,000	8.00		$	483
Fully vested and expected to vest	210,000	8.00		483
Vested	210,000	$	8.00	$	483

Information related to stock options exercised under the 2010 Plan for the periods indicated is as follows:



($ in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Intrinsic value of options exercised	$	—	$	—	$	86	$	608
Cash received from option exercises	$	—	$	—	$	25	$	242
Tax benefit realized from option exercised	$	—	$	—	$	—	$	157

The weighted average remaining contractual term of stock options outstanding under the 2010 Plan as of September 30, 2021 was 2.50 years. All stock options that are outstanding under the 2010 Plan were fully vested and exercisable as of September 30, 2021.

A summary of the changes in the Company’s non-vested restricted stock awards under the 2010 Plan for the nine months ended September 30, 2021 is as follows:



($ in thousands, except share data)	Shares Issued	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Non-vested, as of January 1, 2021	154,500	$	11.66
Awards granted	—	—
Awards vested	(128,500)	12.34
Awards forfeited	(5,000)	9.69
Non-vested, as of September 30, 2021	21,000	$	7.95	$	216

Information related to non-vested restricted stock awards under the 2010 Plan for the periods indicated follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands)	2021		2020		2021		2020
Tax benefit (provision) realized from awards vested	$	—	$	24	$	(85)	$	21

The Company had approximately $69 thousand of unrecognized compensation cost related to unvested restricted stock awards under the 2010 Plan as of September 30, 2021. The Company expects to recognize these costs over a weighted average period of 2.43 years.

2021 Plan: In 2021, the Board of Directors of the Company approved a new equity incentive plan for granting stock options and restricted stock awards to key employees, officers, and non-employee directors of the Company and the Bank (the “2021 Plan”). The 2021 Plan was approved by the Company’s shareholders at the 2021 Annual Meeting. The number of shares authorized to be issued under the 2021 Plan was 1,500,000 shares of the Company’s common stock.

The exercise prices of stock options granted under the plan may not be less than 100% of the fair value of the Company’s stock at the date of grant. There were no stock options granted under the 2021 Plan during the nine months ended September 30, 2021.

Restricted stock awards issued under the 2021 Plan may or may not be subject to vesting provisions. Owners of the restricted stock awards shall have all rights of a shareholder including the right to vote the shares and to all dividends (cash or stock). Compensation expense related to restricted stock awards will be recognized over the vesting period of the awards based on the fair value of the Company’s common stock at the issue date.

A summary of the changes in the Company’s non-vested restricted stock awards under the 2021 Plan for the nine months ended September 30, 2021 is as follows:



($ in thousands, except share data)	Shares Issued	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Non-vested, as of January 1, 2021	—	$	—
Awards granted	176,793	9.90
Awards vested	(152)	9.90
Awards forfeited	—	—
Non-vested, as of September 30, 2021	176,641	$	9.90	$	1,819

No tax benefits or expenses were realized from restricted stock awards under the 2021 Plan for the nine months ended September 30, 2021.