Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 20 -- Stock-Based Compensation

2012 Omnibus Incentive Plan

The Company currently has outstanding stock-based awards granted under the Plan which is currently active and available for future grants. At June 30, 2024, there were 761,406 shares available for grant.

Stock Options

Stock options granted and outstanding under the incentive plan vest over a period of four years and are exercisable over the contractual term of ten years.

A summary of the stock option activity for the three and six months ended June 30, 2024 and 2023 is as follows (option amounts not in thousands):

					Weighted
			Weighted		Average
			Average		Remaining	Aggregate
	Number of		Exercise		Contractual	Intrinsic
	Options		Price		Term	Value
Outstanding at January 1, 2024		590,000	$	51.54	5.9 years	$	21,156
Outstanding at March 31, 2024		590,000	$	51.54	5.6 years	$	38,077
Outstanding at June 30, 2024		590,000	$	51.54	5.4 years	$	23,970
Exercisable at June 30, 2024		590,000	$	51.54	5.4 years	$	23,970
Outstanding at January 1, 2023		440,000	$	45.25	5.6 years	$	—
Outstanding at March 31, 2023		440,000	$	45.25	5.3 years	$	3,146
Outstanding at June 30, 2023		440,000	$	45.25	5.1 years	$	7,863
Exercisable at June 30, 2023		412,500	$	45.07	5.0 years	$	7,447

There were no options exercised during the three and six months ended June 30, 2024 and 2023. For the three months ended June 30, 2024 and 2023, the Company recognized $0 and $76, respectively, of compensation expense related to stock options which is included in general and administrative personnel expenses. For the six months ended June 30, 2024 and 2023, the Company recognized $14 and $166, respectively, of compensation expense. There were no deferred tax benefits related to stock options recognized for the three and six months ended June 30, 2024 and 2023. At June 30, 2024 and December 31, 2023, there was $0 and $14, respectively, of unrecognized compensation expense related to nonvested stock options.

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees, and non-employee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance, and market-based conditions. The determination of fair value with respect to the awards containing only service-based conditions is based on the market value of the Company’s common stock on the grant date. For awards with market-based conditions, the fair value is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome.

On April 17, 2024, the Company awarded Paresh Patel, its Chief Executive Officer, 200,000 restricted shares of common stock. The shares will vest equally over a period of four years, with vesting dates of March 15, 2025, 2026, 2027, and 2028, under the condition that the price per share reaches $200 for a period of 30 consecutive trading days.

Information with respect to the activity of unvested restricted stock awards during the three and six months ended June 30, 2024 and 2023 is as follows:

	Number of			Weighted
	Restricted			Average
	Stock			Grant Date
	Awards			Fair Value
Nonvested at January 1, 2024		271,417		$	37.12
Vested		(29,690	)	$	56.05
Forfeited		(200	)	$	51.87
Nonvested at March 31, 2024		241,527		$	34.78
Granted		204,500		$	79.33
Vested		(19,637	)	$	48.17
Forfeited		(3,500	)	$	34.58
Nonvested at June 30, 2024		422,890		$	55.70
Nonvested at January 1, 2023		342,459		$	39.86
Granted		6,000		$	51.76
Vested		(40,352	)	$	54.83
Forfeited		(2,125	)	$	40.33
Nonvested at March 31, 2023		305,982		$	38.11
Granted		7,000		$	58.52
Vested		(34,689	)	$	45.56
Forfeited		(295	)	$	55.41
Nonvested at June 30, 2023		277,998		$	37.68

The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $1,720 and $1,133 for the three months ended June 30, 2024 and 2023, respectively, and $2,587 and $2,320 for the six months ended June 30, 2024 and 2023, respectively. At June 30, 2024 and December 31, 2023, there was approximately $17,547, and $4,043, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 2.8 years. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Deferred tax benefits recognized	$	61	$	254	$	160	$	517
Tax benefits realized for restricted stock and    paid dividends	$	543	$	521	$	1,054	$	820
Fair value of vested restricted stock	$	946	$	1,580	$	2,610	$	3,793

Subsidiary Equity Plan

For the three months ended June 30, 2024 and 2023, TypTap Group recognized compensation expense related to its stock-based awards of $656 and $658, respectively. For the six months ended June 30, 2024 and 2023, TypTap Group recognized compensation expense related to its stock-based awards of $1,357 and $1,487, respectively. At June 30, 2024 and December 31, 2023, there was $3,022 and $4,438, respectively, of unrecognized compensation expense related to nonvested subsidiary restricted stock and stock options.