Stock-Based Compensation

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

Our shareholders approved the 2024 Omnibus Stock Plan (the "2024 Stock Plan") at our annual meeting of shareholders on May 21, 2024. The 2024 Stock Plan replaced the expired 2014 Omnibus Stock Plan (the "2014 plan") previously approved by the shareholders in 2014. The 2024 Stock Plan is administered by the Compensation Committee of the Board of Directors and has a term of ten years. All directors of the Company and employees of the Company and its subsidiaries are eligible to participate in the 2024 Stock Plan. The 2024 Stock Plan continues the maintenance of the Employee Stock Purchase Plan, as well as provisions for the grant of stock options and other stock-based incentives. The 2024 Stock Plan provides for the grant of five percent of the number of the Company’s common shares outstanding as of the first day of each fiscal year plus the number of common shares that were available for grant of awards, but not granted, in prior years. In no event, however, may the number of common shares available for the grant of awards in any fiscal year exceed ten percent of the common shares outstanding as of the first day of that fiscal year. Common shares subject to an award that is forfeited, terminated, or canceled without having been exercised are generally added back to the number of shares available for grant under the 2024 Stock Plan.

Stock-based compensation expense under all share-based payment plans -- our Employee Stock Purchase Plan, stock option plans, and restricted stock units ("RSUs") -- was included in the results of operations as follows:


	Year Ended December 31,
	2025		2024		2023
Compensation expense, all share-based payment plans	$	8,673	$	8,568	$	6,723
Income tax benefit	1,900		1,780		1,293

Stock-based compensation consisted of the following:

Employee Stock Purchase Plan--Under the Employee Stock Purchase Plan, all full-time employees with six months of service are eligible to purchase, through payroll deductions, common shares. Employee purchases under the Employee Stock Purchase Plan are at 85% of the fair market value of the common shares -- a 15% discount. Compensation costs are recognized as payroll deductions are made. The 15% discount of total shares purchased under the plan resulted in compensation cost recognized of $2,383 in 2025, $2,073 in 2024 and $1,712 in 2023.

Stock Options Plan--The stock options outstanding were awarded under a graded vesting schedule, measured at fair value, and have a term of ten years. Compensation costs for stock options are recognized over the requisite service period on the straight-line recognition method. Compensation cost recognized for stock options was $36 in 2025, $93 in 2024 and $217 in 2023. As of December 31, 2025, compensation cost related to stock options outstanding has been fully recognized. Beginning in 2021, management and the Compensation Committee replaced the issuance of stock options with performance-based restricted stock units ("PRSUs") for certain employees.

Restricted Stock Units--During the year ended December 31, 2025, the Compensation Committee of the Board of Directors awarded 266,715 PRSUs to certain employees and 10,704 restricted stock units ("RSUs") to nonemployee directors. The Compensation Committee made similar awards in prior periods. The awards vest over specified periods. The following table summarizes PRSUs and RSUs as of December 31, 2025:


Restricted Stock Units	Number of Stock Units	Weighted- Average Grant Date Value		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Unvested, January 1, 2025	767,832	$	18.32
Granted	277,419	23.79
Forfeited	(14,890)	21.40
Vested	(515,627)	17.87
Unvested, December 31, 2025	514,734	$	21.63	1.4 years	$	5,335	$	13,126
Employee PRSUs	485,200	$	21.65	1.4 years	$	5,015	$	12,373
Nonemployee Director RSUs	29,534	$	21.36	1.4 years	$	320	$	753

Compensation cost for PRSUs and RSUs is determined using a fair-value method and amortized on the straight-line recognition method over the requisite service period. "Intrinsic value" is defined as the amount by which the fair market value of a common share exceeds the grant date price of a PRSU or an RSU. Compensation expense on PRSUs and RSUs totaled $6,254 in 2025, $6,402 in 2024 and $4,794 in 2023.

We estimated the fair value of each stock-based award on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee exercise behavior. Expected volatilities utilized in the binomial model are based on historical volatility of our share prices and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock-based awards is derived from the output of the binomial model and represents the period of time that awards granted are expected to be outstanding.

The fair values of stock-based awards granted were estimated at the dates of grant with the following weighted-average assumptions:


	Year Ended December 31,
	2025		2024		2023
Volatility rate	9.4	%	9.5	%	9.6	%
Risk-free interest rate	3.9	%	4.6	%	4.1	%
Expected dividend yield	.4	%	.4	%	.4	%
Expected life of awards (years)	3.0		3.0		3.0

General Stock Option Information--The following table summarizes activity under the stock option plans for the year ended December 31, 2025:


Stock Options	Number of Options Outstanding	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, January 1, 2025	1,278,798	$	9.56

Exercised	(310,816)	8.81
Forfeited	(66,350)	7.53
Outstanding, December 31, 2025	901,632	$	9.96	2.6 years	$	14,007

Exercisable, December 31, 2025	901,632	$	9.96	2.6 years	$	14,007

"Intrinsic value" is defined as the amount by which the market price of a common share exceeds the exercise price of an option.

Information regarding the employee stock options outstanding at December 31, 2025 is summarized below:


Stock Options Exercise Price	Number Outstanding	Weighted-Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Exercisable	Weighted- Average Exercise Price




8.18	202,450	0.5 years	8.18		202,450	8.18
8.80	141,400	1.5 years	8.80		141,400	8.80
9.55	154,550	2.5 years	9.55		154,550	9.55
10.55	25,825	3.2 years	10.55		25,825	10.55
10.55	148,198	3.5 years	10.55		148,198	10.55
12.10	30,004	4.2 years	12.10		30,004	12.10
12.10	199,205	4.5 years	12.10		199,205	12.10

	901,632	2.6 years	$	9.96	901,632	$	9.96

Common shares are issued from treasury upon the exercise of stock options, the vesting of PRSUs and RSUs, or purchases under the Employee Stock Purchase Plan.

Tax Benefits of Stock-Based Compensation--Our total income tax benefit from share-based awards -- as recognized in our consolidated statement of operations -- for the last three years was: $1,900 in 2025, $1,780 in 2024, and $1,293 in 2023. Tax benefits for share-based awards are accrued as stock compensation expense and recognized in our consolidated statement of operations. Tax benefits on share-based awards are realized when stock options are exercised or PRSUs and RSUs vest.

When actual tax benefits realized exceed the tax benefits accrued for share-based awards, we realize an excess tax benefit. We had excess tax benefits of: $1,916 in 2025, $1,844 in 2024, and $1,109 in 2023.