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STOCK BASED COMPENSATION
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
STOCK BASED COMPENSATION STOCK BASED COMPENSATION   
The Company's stock based plans include the Second Amended and Restated 2005 Employee Stock Plan (the "2005 Plan") and the 2018 Non-Employee Director Stock Plan (the "2018 Plan"), which have been approved by the Company’s Board of Directors and shareholders. The 2010 Non-Employee Director Stock Plan (the "2010 Plan") expired in May 2018, and as such the Company may only award shares from the 2005 Plan or the 2018 Plan. These shares may be awarded as either stock option awards or restricted stock awards from its pool of authorized but unissued shares.
The following table presents the amount of cumulatively granted stock option awards and restricted stock awards, net of forfeitures and expirations, granted through December 31, 2020:
 Authorized Awards Cumulatively Granted, Net of
Forfeitures and Expirations		TotalAuthorized
but
Unissued
Stock
Option  Awards		Restricted
Stock  Awards
2005 Plan1,650,000 387,258 863,861 1,251,119 398,881 
2010 Plan314,600 46,500 93,245 139,745 — (1)
2018 Plan300,000 — 21,938 21,938 278,062 (1)
(1)The Company may award up to a total of 300,000 shares from the 2018 Plan, inclusive of 174,855 shares that were Authorized but Unissued in the 2010 Plan, and were transferred from the 2010 Plan to the 2018 Plan. Due to this transfer, there are no available shares remaining to be issued from the 2010 Plan.
The following table presents the pre-tax expense associated with stock option and restricted stock awards and the related tax benefits recognized for the periods presented:
 Years Ended December 31
 202020192018
 (Dollars in thousands)
Stock based compensation expense
Restricted stock awards (1)$3,272 $3,679 $3,299 
Directors’ fee expense (2)
Stock options— 23 66 
Restricted stock awards851 701 860 
Total stock based award expense$4,123 $4,403 $4,225 
Related tax benefits recognized in earnings$1,159 $1,238 $1,188 
(1)Inclusive of compensation expense associated with time-vested and performance-based restricted stock awards.
(2)Expense related to awards issued to directors is recognized as directors’ fees within other noninterest expense.
The Company has standard form agreements used for stock option and restricted stock awards. The standard form agreements used for the Chief Executive Officer and all other Executive Officers have previously been disclosed in Securities and Exchange Commission filings and generally provide that: (1) any unvested options or unvested restricted stock vest upon a Change of Control; and, that (2) any stock options which vest pursuant to a Change of Control, which is an event described in Section 280G of the Internal Revenue Code of 1986, will be cashed out at the difference between the acquisition price and the exercise price of the stock option.
Stock Options
The fair value of each stock option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions used for grants under the identified plans:
•Expected volatility is based on the standard deviation of the historical volatility of the weekly adjusted closing price of the Company’s shares for a period equivalent to the expected life of the option.
•Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, historical exercise/forfeiture behavior, and the vesting period, if any.
•Expected dividend yield is an annualized rate calculated using the most recent dividend payment at time of grant and the Company’s average trailing twelve-month daily closing stock price.
•The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option.
•Forfeitures on stock compensation are recognized when they occur.
For the years ended December 31, 2020 and 2019, there were no awards granted by the Company of nonqualified options to purchase shares of common stock. The following table presents the awards granted by the Company of nonqualified options to purchase shares of common stock for the periods presented:
Year Ended December 31
2018
Date of grant4/3/2018
Plan2010
Options granted5,000 
Vesting period (beginning on the grant date)21 months
Expiration date4/3/2028
Expected volatility21.15 %
Expected life (years)5.5
Expected dividend yield1.94 %
Risk free interest rate2.62 %
Fair value per option$13.46 
 
Under all of the Company’s stock based plans, the option exercise price is based upon the average of the high and low trading value of the stock on the date of grant. Stock option awards granted to date under all plans expire at various dates through 2028.
The following table presents relevant information relating to the Company’s stock options for the periods presented:
 Years Ended December 31
 202020192018
 (Dollars in thousands, except per share data)
Fair value of stock options vested based on grant date fair value$22 $21 $85 
Intrinsic value of stock options exercised$404 $883 $1,525 
Cash received from stock option exercises$279 $396 $1,024 
Tax benefit realized on stock option exercises$114 $248 $429 
Weighted average grant date fair value of options granted (per share)n/an/a$13.46 
The following table presents a summary of stock option award activity for the year ended December 31, 2020:
 OutstandingNonvested 
 Stock Option
Awards		 Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term (years)		Aggregate
Intrinsic
Value (1)		Stock
Option
Awards		Weighted
Average
Grant Date
Fair Value		 
 (Dollars in thousands, except per share data) 
Balance at January 1, 202038,500   $42.49 1,666 $13.46 
Granted—   — — — 
Exercised(10,000)27.90 n/an/a
Vestedn/an/a(1,666)13.46 
Forfeited— — — — 
Expired— — — — 
Balance at December 31, 202028,500 (2)$47.61 3.99 years$704 — $— 
Options outstanding, vested, and exercisable at December 31, 202028,500 (2)$47.61 3.99 years$704 
(1)The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the average of the high price and low price at which the Company’s common stock traded on December 31, 2020 of $72.33, which would have been received by in-the-money option holders had they all exercised their options as of that date.
(2)Inclusive of 20,000 vested stock options outstanding to Directors.
For the year ended December 31, 2020, all outstanding stock option awards are vested and there is no unrecognized compensation expense related to those options.
Restricted Stock
The Company grants both time-vested restricted stock awards as well as performance-based restricted stock awards. During the years ended December 31, 2020, 2019, and 2018 the Company made the following restricted stock award grants:
Shares GrantedPlanFair Value (1)Vesting Period
Time-vested
2020
2/27/202046,550 2005 $70.24 Ratably over 5 years from grant date
4/15/2020880 2005$70.02 Ratably over 5 years from grant date
5/27/20209,438 2018$72.86 Immediately upon grant date
2019
2/21/201943,250 2005$83.87 Ratably over 5 years from grant date
3/15/2019600 2005$79.55 Ratably over 5 years from grant date
4/1/20191,090 2005$82.62 Ratably over 3 years from grant date
5/21/20196,500 2018$77.08 Immediately upon grant date
2018
2/15/201839,950 2005$71.75 Ratably over 5 years from grant date
2/27/20181,150 2005$72.60 Ratably over 5 years from grant date
5/15/2018530 2005$74.00 Ratably over 5 years from grant date
5/22/20186,000 2018$76.58 Immediately upon grant date
11/15/2018560 2005$77.78 Ratably over 5 years from grant date
Performance-based
2/27/202017,100 2005$70.24 
The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2023.
2/21/201915,900 2005$83.87 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2022.
2/15/201816,300 2005$71.75 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2021.
(1)The fair value of the restricted stock awards are based upon the average of the high and low prices at which the Company’s common stock traded on the date of grant. The holders of time-vested restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of performance-based restricted stock awards do not participate in the rewards of stock ownership of the Company until vested. The holders of all restricted stock awards are not required to pay any consideration to the Company for the awards.
The following table presents the fair value of restricted stock awards that vesting during the periods presented:
 Years Ended December 31
 202020192018
 (Dollars in thousands)
Fair value of restricted stock awards upon vesting$5,580 $6,005 $6,277 
The following table presents a summary of restricted stock award activity for the year ended December 31, 2020:
 Outstanding Restricted Stock
Awards		 Weighted Average
Grant Price ($)		 
 (Dollars in thousands, except per share data) 
Balance at January 1, 2020193,784   $67.45 
Granted73,968   70.55 
Vested/released(75,197)60.34 
Forfeited(11,050)  70.69 
Balance at December 31, 2020181,505 (1)$71.46 
Unrecognized compensation cost (inclusive of directors’ fees)$7,787 
Weighted average remaining recognition period (years)2.96
(1)Inclusive of 10,300 restricted stock awards outstanding to Directors.