Stock-Based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

The Company issues stock-based compensation in the form of nonvested restricted stock and stock appreciation rights under the 2018 Omnibus Equity Incentive Plan (“Omnibus Plan”). The Omnibus Plan will expire on the tenth anniversary of its effective date. In addition, the Company has an Employee Stock Purchase Plan that was indefinitely suspended effective April 1, 2019. The aggregate number of shares authorized for future issuance under the Omnibus Plan is 2,073,345 shares as of March 31, 2020.

The table below summarizes the stock-based compensation for the three months ended March 31, 2020 and 2019:


	Three Months Ended
	March 31,
	2020		2019
	(Dollars in thousands)
Stock appreciation rights	$	256	$	259
Performance based stock awards	74		95
Restricted stock units and awards	604		744
Employee stock purchase plan	—		37
Total stock-based compensation	$	934	$	1,135

Performance Based Stock Awards (“PBSAs”)

The Company awards PBSAs to key officers of the Company. The stock settled awards are typically granted annually as determined by the Compensation Committee. The performance based shares typically cliff-vest at the end of three years based on attainment of certain performance metrics developed by the Compensation Committee. The ultimate number of shares issuable under each performance award is the product of the award target and the award payout percentage given the level of achievement. The award payout percentages by level of achievement range between 0% of target and 150% of target.

During 2020, the Company granted 41,283 PBSAs. The performance metrics include three year cumulative net income and return on average assets.

The following table summarizes the status of and changes in the performance-based awards:


	Performance Based Stock Awards
	Number of Shares	Weighted-Average Grant Date Fair Value
Nonvested, January 1, 2020	192,248	$9.88
Granted	41,283	13.55
Vested	0	0.00
Forfeited	0	0.00
Nonvested, March 31, 2020	233,531	$10.53

Unrecognized stock-based compensation related to the performance awards issued through March 31, 2020 was $808 thousand and is expected to be recognized over 2.5 years.

Restricted Stock Units (“RSUs”) and Restricted Stock Awards (“RSAs”)

The Company issues RSUs and RSAs to provide additional incentives to key officers, employees, and nonemployee directors. Awards are typically granted annually as determined by the Compensation Committee. The service based RSUs typically cliff-vest at the end of three years for awards issued prior to 2019 and vest in equal amounts over three years for all other RSUs. The service based RSAs typically cliff-vest after one year.

The following table summarizes the status of and changes in the RSUs and RSAs:


	Restricted Stock Units and Awards
	Number of Shares	Weighted-Average Grant Date Fair Value
Nonvested, January 1, 2020	340,780	$15.35
Granted	195,051	13.63
Vested	(86,146)	15.50
Forfeited	0	0.00
Nonvested, March 31, 2020	449,685	$14.58

Unrecognized stock-based compensation related to the RSUs and RSAs issued through March 31, 2020 was $5 million and is expected to be recognized over 2.1 years.