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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2022
STOCK-BASED COMPENSATION [Abstract]  
STOCK-BASED COMPENSATION
7.  STOCK-BASED COMPENSATION

Equity Incentive Plan
The 2019 Equity Incentive Plan (“Plan”) was approved by the Company’s Board of Directors on January 16, 2019 and by its shareholders on March 6, 2019. The purpose of the Plan is to: (i) attract and retain the best available personnel for positions of substantial responsibility, (ii) provide additional incentive to employees, directors and consultants, and (iii) promote the success of the Company’s business. This Plan permits the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, and other stock-based awards. The maximum aggregate number of shares of common stock that may be issued pursuant to all awards under the Plan is 2,300,000. The maximum aggregate number of shares that may be issued under the Plan may be increased annually by up to 3% of the total issued and outstanding common shares of the Company at the beginning of each fiscal year.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer company averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes in to account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on U.S. Treasury yield curve in effect at the time of the grant.

Options
A summary of activity in the Plan for the period indicated is presented in the table below (dollars in thousands, except per share data):


  
Number
of Shares
    
Weighted-Average
Exercise Price
    
Weighted-Average
Remaining Contractual
Life in Years
    
Aggregate
Intrinsic Value
  
Nine Months Ended September 30, 2022
                        
Outstanding at beginning of year:
    
1,602,028
    
$
15.42
          
$
19,453
  
Granted
    
45,203
      
29.40
            
—
  
Exercised
    
(35,676
)
    
13.25
            
(510
)
Forfeited
    
(7,449
)
    
19.30
            
(61
)
Expired
    
(3,317
)
    
18.05
            
(32
)
                               
Balance, September 30, 2022
    
1,600,789
    
$
15.84
      
5.39
    
$
18,850
  
                                 
Exercisable at end of period
    
1,186,948
    
$
14.22
      
4.86
    
$
15,834
  
                                 
Vested at end of period
    
1,186,948
    
$
14.22
      
4.86
    
$
15,834
  

A summary of assumptions used to calculate the fair values of the awards granted during the periods noted is presented below:


  
Nine Months Ended
September 30,
  
   
2022
    
2021
  
Expected volatility
  
40.20% to 40.29%
    
41.20% to 41.32%
  
Expected dividend yield
    
1.30%

   
1.00%

Expected term (years)
  
6.1 to 6.3
    
6.1 to 6.2
 
Risk-free interest rate
  
1.56% to 1.95%
    
0.52% to 0.83%
  
Weighted average grant date fair value
  
$
10.54
    
$
7.07
  

The total intrinsic value of options exercised during the nine months ended September 30, 2022 and September 30, 2021 was $516 thousand and $17 thousand, respectively.

Restricted Stock Awards and Units
A summary of activity in the Plan for the period indicated is presented in the table below:

 
Number
of Shares
    
Weighted-Average
Grant Date
Fair Value
  
Nine Months Ended September 30, 2022
            
Outstanding at beginning of year:
    
42,767
    
$
19.35
  
Granted
    
74,891
      
28.78
  
Vested
    
(25,715
)
    
19.86
  
Forfeited
    
(4,688
)
    
28.16
  
                 
Balance, September 30, 2022
    
87,255
    
$
26.82
  

Restricted stock units granted under the Plan typically vest from one to four years, but vesting periods may vary. Compensation expense for these grants will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date.

The total unrecognized compensation cost for the awards outstanding under the Plan at September 30, 2022 was $3.3 million and will be recognized over a weighted average remaining period of 1.57 years. The total fair value of restricted stock units vested during each of the nine months ended September 30, 2022 and September 30, 2021 was $511 thousand and $489 thousand, respectively.