EMPLOYEE STOCK COMPENSATION

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

On May 31, 2018, our stockholders approved the Company's 2018 Omnibus Stock Incentive Plan (“2018 Omnibus Plan”). The 2018 Omnibus Plan provides that the maximum number of shares available for awards is 4,417,882. As of June 30, 2020, 3,359,922 shares were available for future awards.

Stock-based Compensation Expense

The following table presents stock-based compensation expense and the related tax benefits for the periods indicated:


	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2020		2019		2020		2019
Stock options	$	2	$	(24)	$	4	$	(16)
Restricted stock awards and units	1,468		1,521		3,042		2,366

Total share-based compensation expense	$	1,470	$	1,497	$	3,046	$	2,350
Related tax benefits	$	433	$	440	$	897	$	691

The following table presents unrecognized stock-based compensation expense as of June 30, 2020:

($ in thousands)

Unrecognized Expense

Weighted-Average Remaining Expected Recognition Period

Restricted stock awards and restricted stock units

9,530

2.3 years

Total

9,530

2.3 years

Stock Options

We issued stock options to certain employees, officers, and directors. Stock options are issued at the closing market price immediately before the grant date and generally have a three to five year vesting period and contractual terms of seven to ten years. We recognize an income tax deduction upon exercise of a stock option to the extent taxable income is recognized by the option holder. In the case of a non-qualified stock option, the option holder recognizes taxable income based on the fair market value of the shares acquired at the time of exercise less the exercise price.

The following table represents stock option activity for the three months ended June 30, 2020:


	Three Months Ended June 30, 2020
($ in thousands except per share data)	Number of Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contract Term	Aggregated Intrinsic Value
Outstanding at beginning of period	55,069	$	13.96	4.0 years





Outstanding at end of period	55,069	$	13.96	3.7 years	$	(194)
Exercisable at end of period	52,821	$	13.97	3.6 years	$	(187)

The following table represents stock option activity for the six months ended June 30, 2020:


	Six Months Ended June 30, 2020
($ in thousands except per share data)	Number of Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contract Term	Aggregated Intrinsic Value
Outstanding at beginning of period	62,521	$	13.85	4.3 years


Exercised	(7,452)	$	13.05	5.2 years


Outstanding at end of period	55,069	$	13.96	3.7 years	$	(194)
Exercisable at end of period	52,821	$	13.97	3.6 years	$	(187)

The following table sets forth information regarding unvested stock options for the three and six months ended June 30, 2020:


	Three Months Ended June 30, 2020				Six Months Ended June 30, 2020
	Number of Shares	Weighted-Average Exercise Price Per Share		Number of Shares	Weighted-Average Exercise Price Per Share
Outstanding at beginning of period	2,248	$	13.75	2,248	$	13.75

Vested	—	$	—	—	$	—
Forfeited	—	$	—	—	$	—
Outstanding at end of period	2,248	$	13.75	2,248	$	13.75

Restricted Stock Awards and Restricted Stock Units

We also have granted restricted stock awards and restricted stock units to certain employees, officers, and directors. The restricted stock awards and units are valued at the closing price of our stock on the measurement date. The restricted stock awards and units fully vest after a specified period (generally ranging from one to five years) of continued service from the date of grant plus, in some cases, the satisfaction of performance conditions. These performance targets include conditions relating to our profitability and regulatory standing. The actual amounts of stock released upon vesting will be determined by the Compensation Committee of our Board of Directors upon the Committee's certification of the satisfaction of the target level of performance. We recognize an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted stock, generally upon vesting or, in the case of restricted stock units, when settled. The following table presents unvested restricted stock awards and restricted stock units activity for the three and six months ended June 30, 2020:


	Three Months Ended June 30, 2020				Six Months Ended June 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value Per Share		Number of Shares	Weighted Average Grant Date Fair Value Per Share
Outstanding at beginning of period	1,083,107	$	15.65	923,482	$	15.74
Granted ⁽¹⁾	84,998	$	8.76	354,136	$	13.79
Vested ⁽²⁾	(231,362)	$	16.09	(293,695)	$	15.95
Forfeited ⁽³⁾	(24,073)	$	18.20	(71,253)	$	16.85
Outstanding at end of period	912,670	$	14.91	912,670	$	14.91

(1)There were zero and 78,771 performance-based shares/units included in shares granted for the three and six months ended June 30, 2020.

(2)There were 13,074 and 18,473 performance-based shares/units included in vested shares for the three and six months ended June 30, 2020.

(3)The number of forfeited shares includes aggregate performance-based shares/units of 1,782 and 17,404 for the three and six months ended June 30, 2020.

Stock Appreciation Rights

On August 21, 2012, we granted to the then, and now former, chief executive officer, a ten-year stock appreciation right (“SAR”).

The following table represents SARs activity and the weighted average exercise price per share as of and for the three months ended June 30, 2020:


	Three Months Ended June 30, 2020
($ in thousands except per share data)	Number of Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contract Term	Aggregated Intrinsic Value
Outstanding at beginning of period	1,559,012	$	11.60	2.4 years	$	(5,616)



Outstanding at end of period	1,559,012	$	11.60	2.1 years	$	(1,812)
Exercisable at end of period	1,559,012	$	11.60	2.1 years	$	(1,812)

The following table represents SARs activity and the weighted average exercise price per share as of and for the six months ended June 30, 2020:


	Six Months Ended June 30,
($ in thousands except per share data)	Number of Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contract Term	Aggregated Intrinsic Value
Outstanding at beginning of period	1,559,012	$	11.60	2.6 years	$	8,508



Outstanding at end of period	1,559,012	$	11.60	2.1 years	$	(1,812)
Exercisable at end of period	1,559,012	$	11.60	2.1 years	$	(1,812)