XML 35 R25.htm IDEA: XBRL DOCUMENT v3.24.0.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation

Note 15. Share-Based Compensation

The Company has share-based compensation plans which allow grants of stock options, restricted stock, stock appreciation rights, and restricted stock units to its employees and non-employee directors. The Company’s employee stock option plans are shareholder approved and administered by the Human Resources and Compensation Committee of the Board of Directors. Stock options provide grantees the option to purchase shares of the Parent’s common stock at a specified exercise price and, generally, expire 10 years from the date of grant. Stock option grants include incentive and non-qualified stock options whose vesting may be subject to one or more criteria, including employment or achievement of Company performance measures. Stock option exercise prices were equal to the quoted market price of the Parent’s common stock on the date of grant. Restricted stock provides grantees with rights to shares of common stock upon completion of one or more criteria, including service period, performance or other conditions as established by the Compensation Committee, such as vesting tied to the Company’s financial performance relative to the peer group or achievement of an absolute financial performance target. During the restriction period, all shares are considered outstanding and dividends are paid on the restricted stock. Generally, restricted stock vests over periods ranging from one year to five years from the date of grant. Restricted stock and dividends may be forfeited if an employee terminates prior to vesting.

As of December 31, 2023, total shares authorized under the plans were 2.1 million shares, of which 0.9 million shares were available for future grants.

The Company recognizes compensation expense, measured as the fair value of the share-based award on the date of grant, on a straight-line basis over the requisite service period. Share-based compensation is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders’ equity. For the years ended December 31, 2023, December 31, 2022, and December 31, 2021, compensation expense and the related income tax benefit recognized for stock options and restricted stock were as follows:

(dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Compensation Expense

 

$

15,656

 

 

$

16,066

 

 

$

13,267

 

Income Tax Benefit

 

 

4,153

 

 

 

4,262

 

 

 

3,520

 

 

Restricted Stock

As of December 31, 2023, unrecognized compensation expense related to unvested restricted stock was $18.3 million. The unrecognized compensation expense is expected to be recognized over a weighted average period of 1.81 years.

The following table presents the activity for restricted stock:

 

 

 

Number of Shares

 

 

Weighted Average
Grant Date Fair Value

 

 

Grant Date Fair
Value of
Restricted Stock
that Vested
During the Year
(in thousands)

 

Unvested as of December 31, 2020

 

 

328,769

 

 

$

82.02

 

 

 

 

Granted

 

 

292,007

 

 

 

90.23

 

 

 

 

Vested

 

 

(97,278

)

 

 

78.55

 

 

$

8,673

 

Forfeited

 

 

(22,962

)

 

 

86.48

 

 

 

 

Unvested as of December 31, 2021

 

 

500,536

 

 

$

87.28

 

 

 

 

Granted

 

 

192,030

 

 

 

85.80

 

 

 

 

Vested

 

 

(138,823

)

 

 

83.21

 

 

$

11,640

 

Forfeited

 

 

(13,074

)

 

 

86.96

 

 

 

 

Unvested as of December 31, 2022

 

 

540,669

 

 

$

87.81

 

 

 

 

Granted

 

 

201,378

 

 

 

67.78

 

 

 

 

Vested

 

 

(129,294

)

 

 

86.47

 

 

$

9,190

 

Forfeited

 

 

(33,965

)

 

 

85.13

 

 

 

 

Unvested as of December 31, 2023 1

 

 

578,788

 

 

$

81.30

 

 

 

 
1.
As of December 31, 2023, 109,863 shares were unvested from service-based grants.

Stock Options

There were no stock options granted during the years ended December 31, 2023, December 31, 2022, and December 31, 2021. All previously issued stock options granted were fully vested prior to December 31, 2018. The Company reissues treasury stock to satisfy stock option exercises.

 

The following summarizes certain stock option activity of the Company for the years ended December 31, 2023, December 31, 2022, and December 31, 2021:

 

(dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

Intrinsic Value of Stock Options Exercised

 

$

—

 

 

$

679

 

 

$

6,755

 

Cash Received from Stock Options Exercised

 

 

—

 

 

 

786

 

 

 

7,473

 

Tax Benefits Realized from Stock Options Exercised

 

 

—

 

 

 

166

 

 

 

1,611