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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2024
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. The 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 was 4,919,509 at June 30, 2024. 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 the U.S. Treasury yield curve in effect at the time of the grant.

Options
A summary of activity in the Plan during 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
  
Six Months Ended June 30, 2024
                        
Outstanding at beginning of year:
    
1,280,858
    
$
16.91
          
$
13,052
  
Granted
    
32,465
      
29.32
            
—
  
Exercised
    
(5,969
)
    
18.40
            
(51
)
Forfeited
    
—
   
—
            
—
Expired
    
—
   
—
            
—
                               
Balance, June 30, 2024
    
1,307,354
    
$
17.21
      
4.73
    
$
13,001
  
                                 
Exercisable at end of period
    
1,181,221
    
$
16.32
      
4.38
    
$
12,683
  
                                 
Vested at end of period
    
1,181,221
    
$
16.32
      
4.38
    
$
12,683
  

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


  
Six Months Ended
June 30,
  
   
2024
    
2023
  
Expected volatility
  
40.45%

 
39.13% to 39.68%
  
Expected dividend yield
    
1.80%

   
1.74% to 1.90%

Expected term (years)
  
6.1
    
6.1 to 6.3
 
Risk-free interest rate
  
3.94%
    
3.91% to 3.98%
  
Weighted average grant date fair value
  
$
11.10
    
$
10.26
  

The total intrinsic value of options exercised during the six months ended June 30, 2024 and 2023 was $52 thousand and $313 thousand, respectively.

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

 
Number
of Shares
    
Weighted-Average
Grant Date
Fair Value
  
Six Months Ended June 30, 2024
            
Outstanding at beginning of year:
    
125,917
    
$
26.58
  
Granted
    
89,103
      
26.56
  
Vested
    
(23,478
)
    
27.38
  
Forfeited
    
(3,647
)
    
24.54
  
                 
Balance, June 30, 2024
    
187,895
    
$
26.51
  

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 fair value of restricted stock units vested during each of the six months ended June 30, 2024 and 2023 was $643 thousand and $930 thousand, respectively.

For the three months ended June 30, 2024 and 2023 the Company recorded stock-based compensation expense related to the Plan of $657 thousand and $590 thousand, respectively. The Company recorded stock-based compensation expense related to the Plan of $1.1 million for the six months ended June 30, 2024 and 2023, respectively. The total unrecognized compensation cost for the awards outstanding under the Plan at June 30, 2024 was $4.4 million and will be recognized over a weighted average remaining period of 1.75 years.