Stock-based compensation

12 Months Ended

Dec. 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 for the year ended December 31, 2021:


	Year Ended December 31,
	2021
	Restricted Stock Units Outstanding	Weighted Average Grant Date Fair Value
Balance at beginning of period	1,047,071	$	26.06
Granted	194,388	43.05
Vested	(710,730)	22.99
Forfeited	(38,409)	28.96
Balance at end of period	492,320	$	36.06

The total fair value of restricted stock units vested and released was $16,340, $5,619 and $9,923 for the years ended December 31, 2021, 2020, and 2019, respectively.

The compensation cost related to stock grants and vesting of restricted stock units was $8,907, $9,213 and $7,089 for the years ended December 31, 2021, 2020, and 2019, respectively. This included costs related to director grants and compensation elected to be settled in stock amounting to $635, $898 and $724 for the years ended December 31, 2021, 2020, and 2019, respectively.

As of December 31, 2021, there was $11,652 of total unrecognized compensation cost related to unvested restricted stock units which is expected to be recognized over a weighted-average period of 2.5 years. As of December 31, 2021, there were 1,812,577 shares available for issuance under the 2016-LTIP plan. As of December 31, 2021 and 2020, there were $274 and $613, respectively, accrued in other liabilities related to dividend equivalent units declared to be paid upon vesting and distribution of the underlying restricted stock units.

Performance Based Restricted Stock Units

The following table summarizes information about the changes in performance stock units as of and for the year ended December 31, 2021.




	Year Ended December 31,
	2021
	Performance Stock Units Outstanding	Weighted Average Grant Date Fair Value
Balance at beginning of period (unvested)	53,147	$	36.21
Granted	65,304	43.20
Vested	—	—
Forfeited or expired	(2,701)	37.11
Balance at end of period (unvested)	115,750	$	40.13

During 2020, the Company began awarding performance-based restricted stock units to executives and other officers and employees. Under the terms of the awards, the number of units that will vest and convert to shares of common stock will be based on the Company's performance relative to a predefined peer group over a 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, 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 Company's 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 recorded compensation cost $1,375 and $1,001 for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company determined the probability of meeting the performance criteria for each grant, and recorded compensation cost associated with a 150.0% (related to shares granted in 2020) and 85.0% (related to shares granted in 2021) vesting, when factoring in the conversion of PSUs to shares of common stock. As of December 31, 2021, maximum unrecognized compensation cost at 200% payout related to the unvested PSUs was $6,914, and the remaining performance period over which the cost could be recognized was 1.8 years.

Employee Stock Purchase Plan:

The Company maintains an employee stock purchase plan 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). There were 37,310, 30,179 and 23,171 shares of common stock issued under the ESPP with proceeds from employee payroll withholdings of $1,190, $919 and $764, during the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021 and 2020, there were 2,341,696 and 2,379,006 shares available for issuance under the ESPP, respectively.