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 four years from the date of grant. Restricted stock and dividends may be forfeited if an employee terminates prior to vesting.

As of December 31, 2020, total shares authorized under the plans were 2.1 million shares, of which 1.6 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, 2020, December 31, 2019, and December 31, 2018, compensation expense and the related income tax benefit recognized for stock options and restricted stock were as follows:

As of December 31, 2020, unrecognized compensation expense related to unvested restricted stock was $12.9 million. The unrecognized compensation expense is expected to be recognized over a weighted average period of 2.05 years.

	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, 2017		320,103		$	69.36
Granted		120,173			83.87
Vested		(110,231	)		59.41	$	9,081
Forfeited		(15,558	)		73.82
Unvested as of December 31, 2018		314,487		$	78.17
Granted		130,093			82.82
Vested		(107,759	)		66.46	$	8,910
Forfeited		(26,872	)		83.34
Unvested as of December 31, 2019		309,949		$	83.75
Granted		161,168			80.97
Vested		(99,894	)		84.69	$	8,544
Forfeited		(42,454	)		84.36
Unvested as of December 31, 2020 ¹		328,769		$	82.02

¹ As of December 31, 2020, 56,362 shares were unvested from service-based grants.

There were no RSUs granted during 2020, 2019, and 2018. All RSUs were fully vested as of December 31, 2019. The RSUs vest over periods ranging from three years to four years from the date of grant and are subject to forfeiture until performance and employment targets are achieved. Upon vesting, the RSUs are converted to cash based on the closing stock price on the vesting date. During December 31, 2020, there was no recognized compensation expense related to RSUs. Total recognized compensation expense related to the RSUs was $1.0 million for the years ended December 31, 2019, and $0.6 million for the years ended December 31, 2018, respectively.

	Number of Units			Weighted Average Grant Date Fair Value		Fair Value of Restricted Stock Unit that Vested During the Year (in thousands)
Balance as of December 31, 2017		116,489		$	60.22
Vested		(62,252	)		57.00	$	5,127
Forfeited		(2,173	)		63.92
Balance as of December 31, 2018		52,064		$	63.92
Vested		(52,064	)		82.23	$	4,311
Balance as of December 31, 2019		—		$	—

There were no stock options granted for the years ended December 31, 2020, December 31, 2019, and December 31, 2018. 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 table presents the activity related to stock options under all plans for the year ended December 31, 2020:

	Stock Options				Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)			Aggregate Intrinsic Value (in thousands)
Stock Options Outstanding as of January 1, 2020		237,058			$	45.44
Exercised		(53,004	)			45.99
Stock Options Outstanding as of December 31, 2020		184,054		45.28				1.0		$	5,768
Stock Options Vested and Exercisable as of December 31, 2020		184,054		45.28				1.0	5,768

The following summarizes certain stock option activity of the Company for the years ended December 31, 2020, December 31, 2019, and December 31, 2018:

(dollars in thousands)		2020			2019			2018
Intrinsic Value of Stock Options Exercised		$	2,261		$	1,106		$	1,634
Cash Received from Stock Options Exercised	2,438			1,473			1,791
Tax Benefits Realized from Stock Options Exercised	485			727			240