Stock-based compensation

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Restricted Stock Units

The Company grants restricted stock units under compensation arrangements for the benefit of employees, executive officers, and directors. Restricted stock unit grants are subject to time-based vesting. The total number of restricted stock units granted represents the maximum number of restricted stock units eligible to vest based upon the service conditions set forth in the grant agreements.

The following table summarizes information about the changes in restricted stock units as of and for the three months ended March 31, 2021:


	Restricted Stock Units Outstanding	Weighted Average Grant Date Fair Value
Balance at beginning of period	1,047,071	$	26.06
Granted	177,941	43.13
Vested	(126,011)	34.63
Forfeited	(10,192)	27.72
Balance at end of period	1,088,809	$	26.56

The total fair value of restricted stock units vested and released was $4,364 and $4,533 for the three months ended March 31, 2021 and 2020, respectively. The weighted average grant date fair value price was $43.13 and $36.71 for the three months ended March 31, 2021 and 2020, respectively.

The compensation cost related to stock grants and vesting of restricted stock units was $2,466 and $1,802 for the three months ended March 31, 2021 and 2020, respectively. This included $157 and $147 paid to Company independent directors during the three months ended March 31, 2021 and 2020, respectively, related to independent director grants and compensation elected to be settled in stock.

As of March 31, 2021 and December 31, 2020, there was $18,103 and $13,436 of total unrecognized compensation cost related to unvested restricted stock units which is expected to be recognized over a weighted-average period of 2.7 years and 2.5 years, respectively. As of March 31, 2021 and December 31, 2020, there were 2,188,164 and 2,240,434 shares available for issuance under the 2016-LTIP plan, respectively. At March 31, 2021 and December 31, 2020, there were $651 and $613, respectively, accrued in other liabilities related to dividends declared to be paid upon vesting and distribution of the underlying restricted stock units ("RSUs").

Performance Based Restricted Stock Units

The following table summarizes information about the changes in performance stock units as of and for the three months ended March 31, 2021:




	Performance Stock Units Outstanding	Weighted Average Grant Date Fair Value
Balance at beginning of period (unvested)	53,147	36.21
Granted	65,131	43.20
Vested	—	—
Forfeited or expired	(485)	36.21
Balance at end of period (unvested)	117,793	39.20

The Company awards performance-based restricted stock units ("PSUs") to executives and other officers and employees. Under the terms of the award, the number of units that will vest and convert to shares of common stock will be based on the extent to which the Company achieves specified performance criteria during the fixed three-year performance period. The number of shares issued upon vesting will range from 0% to 200% of the PSUs granted. The PSUs vest at the end of a three-year period based on average adjusted return on tangible equity as reported, adjusted for unusual gains/losses, merger expenses, and other items as approved by the compensation committee of the Company's board of directors. Compensation expense for the PSUs will be estimated each period based on the fair value of the stock at the grant date

and the most probable outcome of the performance condition, adjusted for the passage of time within the vesting period of the awards.

The Company granted 65,131 shares of performance based restricted stock units during the three months ended March 31, 2021. The Company recorded compensation cost of $200 and $81 during the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the Company determined the probability of meeting the performance criteria, and recorded compensation cost associated with a 150% vesting, when factoring in the conversion of PSUs to shares of common stock. During the three months ended March 31, 2021. there were 485 forfeitures related to these grants. As of March 31, 2021, maximum unrecognized compensation cost related to the unvested PSUs was $5,895, and the remaining performance period over which the cost could be recognized was 2.5 years.

Employee Stock Purchase Plan:

The Company maintains an employee stock purchase plan (“ESPP”) under which employees, through payroll deductions, are able to purchase shares of Company common stock. The purchase price is 95% of the lower of the market price on the first or last day of the offering period. The maximum number of shares issuable during any offering period is 200,000 shares and a participant may not purchase more than 725 shares during any offering period (and, in any event, no more than $25 worth of common stock in any calendar year). During the three months ended March 31, 2021 and 2020, there were 21,566 and 12,145 shares of common stock issued under the ESPP, respectively. As of March 31, 2021 and 2020, there were 2,357,440 and 2,397,040 shares available for issuance under the ESPP, respectively.