Shareholders' Equity and Share-Based Compensation (Notes)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Shareholders' Equity and Share-based Compensation

SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

Preferred Stock. The Company's articles of incorporation authorize the issuance of up to 50,000,000 shares of preferred stock, par value $0.01 per share. The Company’s Board of Directors has designated 6,600,000 shares for issuance as 6.900% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, and the Company sold 4,460,000 of such shares during the first quarter of 2020 through a public offering for which it received proceeds of $107,988, net of $3,512 in broker commissions and other expenses. The Company used the proceeds to redeem all 2,300,000 outstanding shares of its 8.50% Series A Cumulative Redeemable Preferred Stock at an aggregate redemption price of approximately $25.35 per share, which included accumulated and unpaid dividends declared as of the redemption date March 14, 2020. The Company also used the proceeds to partially redeem 1,700,000 shares of its 7.625% Series B Preferred Stock at an aggregate redemption price of approximately $25.32 per share, which included accumulated and unpaid dividends declared as of the redemption date March 16, 2020. The excess of the $25.00 liquidation price per share over the carrying value of the preferred stock redeemed resulted in a charge of $(3,914) to net income to common shareholders for the nine months ended September 30, 2020.

The Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption, and will remain outstanding indefinitely unless redeemed or otherwise repurchased or converted into common stock pursuant to the terms of the Preferred Stock. The Company had 2,788,330 shares of its Series B Preferred Stock remaining as of September 30, 2020, which may be redeemed at any time and from time to time at the Company's option at a cash redemption price of $25.00 per share plus any accumulated and unpaid dividends. Except under certain limited circumstances described

in Article IIIC of the Company’s Restated Articles of Incorporation, as amended, the Company may not redeem the Series C Preferred Stock prior to April 15, 2025. On or after that date, the Series C Preferred Stock may be redeemed at any time and from time to time at the Company's option at a cash redemption price of $25.00 per share plus any accumulated and unpaid dividends. Because the Preferred Stock is redeemable only at the option of the issuer, it is classified as equity on the Company’s consolidated balance sheet.

The Series B Preferred Stock pays a cumulative cash dividend equivalent to 7.625% of the $25.00 liquidation preference per share each year. The Series C Preferred stock pays a cumulative cash dividend equivalent to 6.900% of the $25.00 liquidation preference per share each year until April 15, 2025 upon which date and thereafter, the Company will pay cumulative cash dividends at a percentage of the $25.00 liquidation value per share equal to an annual floating rate of three-month LIBOR plus a spread of 5.461%. The Company paid its regular quarterly dividend of $0.4765625 per share of Series B Preferred Stock and $0.43125 per share of Series C Preferred Stock on October 15, 2020 to shareholders of record as of October 1, 2020.

Common Stock. The following table summarizes information regarding monthly dividend declarations on the Company’s common stock during the nine months ended September 30, 2020:

	Nine Months Ended
	September 30, 2020
Declaration Date	Amount Declared		Record Date	Payment Date
January 13, 2020	$	0.15	January 24, 2020	February 3, 2020
February 14, 2020	0.15		February 24, 2020	March 2, 2020
March 10, 2020	0.15		March 23, 2020	April 1, 2020
April 8, 2020	0.15		April 22, 2020	May 1, 2020
May 12, 2020	0.15		May 22, 2020	June 1, 2020
June 10. 2020	0.13		June 22, 2020	July 1, 2020
July 13, 2020	0.13		July 23, 2020	August 4, 2020
August 10, 2020	0.13		August 21, 2020	September 1, 2020
September 14, 2020	0.13		September 24, 2020	October 1, 2020

Stock and Incentive Plans. The Company’s Board adopted the 2020 Stock and Incentive Plan, which was approved by the Company’s shareholders on June 9, 2020. The 2020 Plan, which replaced the Company’s 2018 Stock and Incentive Plan (the “2018 Plan”), reserves for issuance up to 2,300,000 common shares for eligible employees, non-employee directors, consultants, and advisors to the Company to be granted in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, and performance cash awards. Awards previously granted under the 2018 Plan or any other prior equity plan will remain outstanding and valid in accordance with their terms, but no new awards will be granted under the 2018 Plan or any other prior equity plan. Total stock-based compensation expense recognized by the Company for the three and nine months ended September 30, 2020 was $568 and $1,299, respectively, compared to $306 and $899 for the three and nine months ended September 30, 2019, respectively. The following table presents a rollforward of the restricted stock activity for the periods indicated:

	Nine Months Ended
	September 30,
	2020			2019
	Shares	Weighted Average Grant Date Fair Value Per Share		Shares	Weighted Average Grant Date Fair Value Per Share
Restricted stock outstanding as of beginning of period	119,213	$	18.56	113,904	$	19.19
Restricted stock granted	240,293	13.88		67,997	18.09
Restricted stock vested	(71,431)	18.25		(62,688)	19.20
Restricted stock outstanding as of end of period	288,075	$	14.74	119,213	$	18.56

As of September 30, 2020, the grant date fair value of the Company’s remaining nonvested restricted stock is $3,295 which will be amortized into compensation expense over a weighted average period of 2.2 years.