Stock-Based Compensation

3 Months Ended

Mar. 31, 2025

Equity award plans

The Company has unvested restricted stock outstanding under two equity award plans, which are collectively referred to as the “Stock Plans”. The current plan under which any future issuances of equity awards will be made is the 2022 Bankwell Financial Group, Inc. Stock Plan, or the “2022 Plan”. All equity awards made under the 2022 Plan are made by means of an award agreement, which contains the specific terms and conditions of the grant. To date, all equity awards have been in the form of stock options or restricted stock. At March 31, 2025, there were 300,856 shares reserved for future issuance under the 2022 Plan.

Restricted Stock: Restricted stock provides grantees with rights to shares of common stock upon completion of a service period. Shares of unvested restricted stock are considered participating securities. Restricted stock awards generally vest over one to five years.

The following table presents the activity for restricted stock for the three months ended March 31, 2025:


	Three Months Ended March 31, 2025
	Number of Shares		Weighted Average Grant Date Fair Value
Unvested at beginning of period	223,875	(1)	$	28.50
Granted	72,774	(2)	32.66
Vested	(96,714)	(3)	32.40
Forfeited	(14,710)		32.56
Unvested at end of period	185,225

(1) Includes 35,186 shares of performance based restricted stock.

(2) Includes 34,271 shares of performance based restricted stock.

(3) Includes 4,136 shares of performance based restricted stock.

The total fair value of restricted stock awards vested during the three months ended March 31, 2025 was $3.1 million.

The Company's restricted stock expense for the three months ended March 31, 2025 and March 31, 2024 was $0.2 million and $1.1 million, respectively. At March 31, 2025, there was $4.9 million of unrecognized stock compensation expense for restricted stock, expected to be recognized over a weighted average period of 1.5 years.

Performance Based Restricted Stock: The Company has 53,255 shares of performance based restricted stock outstanding as of March 31, 2025 pursuant to the Company’s Stock Plans. The awards generally vest over a three year service period, provided certain performance metrics are met. The share quantity that ultimately vests can range between 0% and 200%, which is dependent on the degree to which the performance metrics are met. The Company records an expense over the vesting period based on (a) the probability that the performance metrics will be met and (b) the fair market value of the Company’s stock at the date of the grant.

Bankwell Financial Group, Inc. 10-Q