As a result of the Merger, the Company assumed the LINKBANCORP, Inc. 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan authorized the issuance or delivery to participants of up to 450,000 shares of LINKBANCORP common stock pursuant to grants of incentive and non-statutory stock options. The Plan is administered by the members of LINKBANCORP’s Compensation Committee (the "Committee"). Unless the Committee specifies a different vesting schedule, awards under the Plan shall be granted with a vesting rate of 20 percent per year. Vesting may be accelerated under certain conditions or at the discretion of the Committee at any time. Employees and directors of LINKBANCORP or its subsidiaries were eligible to receive awards under the plan, except that nonemployees were not granted incentive stock options. Stock options are either “incentive” stock options or “nonqualified” stock options. Incentive stock options have certain tax advantages and must comply with the requirements of Section 422 of the Internal Revenue Code. The 2019 Plan was frozen such that no new awards would be granted under the 2019 Plan following receipt of shareholder approval of the LINKBANCORP, Inc. 2022 Equity Incentive Plan described within this footnote.

On May 26, 2022, the Company's shareholders approved the LINKBANCORP, Inc. 2022 Equity Incentive Plan (the "2022 Plan"). The 2022 Plan authorizes the issuance or delivery to participants of up to 475,000 shares of the Company's common stock pursuant to grants of restricted stock, restricted stock units, stock options, and non-qualified stock options. The 2022 Plan is administered by the members of LINKBANCORP’s Compensation Committee (the "Committee"). At least 95% of the awards under the 2022 Plan will vest no earlier than one year after the grant date.

The table below provides details of the Company's stock options at December 31, 2024.


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term in Years		Aggregate Intrinsic Value (in ‘000s)
Outstanding, December 31, 2023		514,000		$	9.72		6.8	$	—
Granted		150,193			6.46		7.7		—
Expired/terminated		(70,025	)		8.08		—
Exercised		(2,377	)		5.56		—
Outstanding, December 31, 2024		591,791		$	9.10		6.0	$	145
Exercisable at period end		401,991		$	9.73		4.7	$	47

The exercise prices for options outstanding as of December 31, 2024 ranged from $5.45 to $12.98.

The Company determined the expected life of the stock options using a simplified method approach allowed for plain-vanilla share options. The risk-free interest rate is based on the U.S. treasury yield curve in effect as of the grant date. Expected volatility was determined using the calculated value method of an option pricing model that substitutes the historical volatility of an appropriate industry/sector index for the expected volatility.


	December 31,
	2024		2023
Weighted average fair value of options granted	$	1.66	$	1.84
Dividend yield	4.60%		4.29%
Expected volatility	35.24%		35.45%
Risk-free interest rate	4.47%		4.20%
Expected life (in years)		6.1		6.5
Assumed forfeiture rate	0.00%		4.00%

The table below provides details of the Company's restricted stock activity at December 31, 2024.


	Number of Shares			Average Market Price at Grant
Outstanding, December 31, 2023		384,724		$	6.30
Restricted Stock Units Granted		125,000			6.58
Expired/terminated		—
Vested		(116,641	)
Outstanding, December 31, 2024		393,083		$	6.40

Additional information related to the equity incentive plans during each year follows:


	December 31,
(in thousands, except share data)	2024		2023
Stock-based compensation expense recognized	$	988	$	244
Number of unvested shares:
Restricted stock plans		393,083		384,724
Stock option plans		189,800		223,500
Fair value of unvested stock options:
Restricted stock plans	$	2,518	$	2,422
Stock option plans	$	193	$	355
Amount remaining to be recognized as expense
Restricted stock plans	$	2,246	$	2,314
Stock option plans	$	161	$	310

The remaining amounts of $2.2 million and $161 thousand for restricted stock and options, respectively, will both be recognized ratably as expense through December 31, 2029.