Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Assumptions

The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the years ended December 31, 2023, 2022, and 2021 using a Black Scholes-Merton Model:

 

	2023			2022			2021
Directors and SLT1:
Expected dividend yield	$	0.32		$	0.25		$	0.25
Expected volatility	37.89		%	36.07		%	35.78		%
Risk-free interest rate	4.39		%	2.31		%	0.51		%
Expected life (in years)	4.0			4.0			4.0
Employees:
Expected dividend yield	$	0.32		$	0.25		$	0.25
Expected volatility	38.25		%	37.49		%	38.67		%
Risk-free interest rate	4.41		%	2.35		%	0.32		%
Expected life (in years)	3.0			3.0			3.0
1 Senior Leadership Team ("SLT") consists of officers and key members of management.

Summary of Stock Options Outstanding

The following is a summary of stock options vested and exercisable as of December 31, 2023:

 

		Weighted Average	Weighted
Range of	Number	Remaining	Average
Exercise	of	Contractual	Exercise		Intrinsic
Prices	Shares	Life	Price		Value
					(in thousands)
$13.95 - 27.58	1,340,919	4.23	$	24.46	$	66,278
$28.28 - 37.07	478,793	6.54	31.04		20,509
$37.09 - 69.62	204,713	7.30	48.00		5,291
Total	2,024,425	5.09	$	28.39	$	92,078

Summary of Stock Option Activity

A summary of option activity under the plans is as follows:

		Weighted Average Exercise
Options	Shares	Price
Outstanding at December 31, 2022	4,560,520	$	30.14
Granted	329,173	61.14
Exercised	(1,142,640)	29.10
Forfeited or Expired	(127,468)	34.80
Outstanding at December 31, 2023	3,619,585	$	33.09
Exercisable at December 31, 2023	2,024,425	$	28.39

Summary of Performance Share Units Assumptions

The following weighted average assumptions were used to determine the fair value of the PSUs granted on the original grant date for expense recognition purposes for PSUs granted during the years ended December 31, 2023 and 2022, using a Monte Carlo Model:

	2023			2022			2021
Expected dividend rate	$	0.32		$	0.25		$	0.25
Expected volatility	32.71		%	37.60		%	39.10		%
Risk-free interest rate	4.66		%	2.00		%	0.28		%
Expected life (in years)	2.80			2.80			2.80

Schedule of Nonvested Performance-based Units Activity

A summary of the unvested PSUs is as follows:

	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2022	93,982	$	36.62
Granted	58,130	84.42
Vested	—	—
Forfeited	—	—
Unvested at December 31, 20231, 2	152,112	$	54.88
1 Consists of 22,222 PSUs cliff vesting December 31, 2023, 71,760 PSUs cliff vesting December 31, 2025, and 58,130 PSUs cliff vesting December 31, 2026.
2 The 22,222 PSUs cliff vesting December 31, 2023 were approved by the Compensation Committee and issued to holders in February 2024.

Summary of Unvested Restricted Stock Awards

A summary of the unvested restricted stock awards is as follows:

		Weighted Average Grant Date
Restricted stock	Shares	Fair Value
Unvested at December 31, 2022	217,168	$	33.34
Granted	75,499	59.67
Vested	(99,309)	32.76
Forfeited	(6,274)	39.64
Unvested at December 31, 2023	187,084	$	44.07

A summary of the unvested Key Employee Awards is as follows:

	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2022	39,899	$	53.45
Granted	—	—
Vested	—	—
Forfeited	—	—
Unvested at December 31, 2023	39,899	$	53.45

Summary of Share-Based Compensation Expense

A summary of share-based compensation is as follows for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
Grant date fair value of awards during the period:	(in thousands)
Options	$	5,259	$	6,522	$	7,010
PSUs	4,907		2,275		1,622
Restricted stock	4,505		3,671		2,517
Key employee awards	—		—		1,572
Total	$	14,671	$	12,468	$	12,721

 

	2023		2022		2021
Share-based compensation expense:	(in thousands)
Options	$	8,810	$	8,585	$	8,724
PSUs	2,561		958		525
Restricted stock	3,977		3,105		2,519
Key employee awards	1,036		1,052		44
Total	$	16,384	$	13,700	$	11,812

	2023		2022		2021
Income tax benefit related to share-based compensation:	(in thousands)
Options	$	8,138	$	2,715	$	4,571
Restricted stock	720		241		837
Total	$	8,858	$	2,956	$	5,408