Note 7. Restricted Stock Plan

The Bank had an employee and director restricted stock plan and reserved 405,805 shares of stock for issuance thereunder. The Company adopted the Plan, pursuant to which employee and directors of the Company could acquire shares of common stock. The Plan was adopted by the Company's Board of Directors in April 2014, and was subject to the right of the Board of Directors to terminate the Plan at any time, terminated on June 30, 2018. The termination of the Plan, either at the scheduled termination date or before such date, did not affect any award issued prior to termination.

As of September 30, 2019 non‑vested restricted stock awards totaling 6,000 were outstanding as follows:


	Employees
		Weighted
		Average
	Shares	Fair Value
Nonvested Awards December 31, 2018	9,000	$	7.30
Vested in 2019	(3,000)		7.30
Nonvested Awards September 30, 2019	6,000	$	7.30

As stated in Note 1, the Company follows ASC Topic 718‑10 which requires that restricted stock‑based compensation to employees and directors be recognized as compensation cost in the income statement based on their fair values on the measurement date. The fair value of restricted stock granted is equal to the underlying fair value of the stock. As a result of applying the provisions of ASC Topic 718‑10, during the three and nine months ended September 30, 2018 the Company recognized restricted stock‑based compensation expense of $10,000, or $7,000 net of tax, and $26,000, or $19,000 net of tax, respectively, related to the 2014 restricted stock awards. During the three and nine months ended September 30, 2019 the Company recognized stock‑based compensation expense of $5,000 or $4,000 net of tax, and $16,000, or $12,000 net of tax, respectively, related to the 2014 restricted stock awards. Unrecognized restricted stock‑based compensation expense related to 2014 restricted stock awards totaled approximately $31,000 at September 30, 2019. The remaining period over which this unrecognized expense is expected to be recognized is approximately two years.