Stock-Based Compensation

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement, Noncash Expense [Abstract]

NOTE 10. Stock-Based Compensation

On May 16, 2023, the Company's shareholders approved the 2023 Stock Incentive Plan ("the 2023 Plan") which allows key employees and directors to increase their personal financial interest in the Company. The 2023 Plan permits the issuance of incentive stock options and non-qualified stock options and the award of common stock, restricted stock, and stock units. The plan authorizes the issuance of up to 250,000 shares of common stock. The 2023 Plan replaced the 2014 Stock Incentive Plan. To date, equity awards have only been issued in the form of restricted stock.

The Company periodically grants restricted stock to its directors, executive officers and certain non-executive officers. Restricted stock provides grantees with rights to shares of common stock upon completion of a service period or achievement of Company performance measures. During the restriction period, all shares are considered outstanding and dividends are paid to the grantee. Outside directors are periodically granted restricted shares which vest over a period of one year. Executive officers have been granted restricted shares which vest over a three year service period and restricted shares which cliff vest based on meeting performance measures over a three year period. Certain non-executive officers have also been granted restricted shares which vest over a three year service period.

The following table presents the activity for restricted stock awards for the years ended December 31, 2025 and 2024:


	Twelve Months Ended
	December 31,
	2025					2024
	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Nonvested, beginning of period		64,043		$	32.02		56,914		$	35.06
Granted		39,545			36.40		41,940			30.00
Vested		(32,914	)		33.09		(29,426	)		34.40
Forfeited		(2,198	)		34.53		(5,385	)		35.38
Nonvested, end of period		68,476		$	33.96		64,043		$	32.02

The Company recognizes compensation expense over the restricted period based on the fair value of the Company's stock on the grant date. Compensation expense was $1.2 million and $912 thousand during December 31, 2025 and 2024, respectively. The total grant date fair value of restricted stock which vested was $1.1 million and $1.0 million for the years ended December 31, 2025 and 2024, respectively. The total vest date fair value of restricted stock which vested was $1.2 million and $883 thousand for the years ended December 31, 2025 and 2024, respectively. Unrecognized compensation cost related to unvested restricted stock was $730 thousand at December 31, 2025. This amount is expected to be recognized over a weighted average period of 1.75 years. The Company's policy is to recognize forfeitures as they occur.