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Stock-Based Compensation Plans
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Plans Stock-Based Compensation Plans.
The Company has two Stock Option Plans (the 2006 Stock Incentive Plan and the 2016 Equity Incentive Option Plan) under which stock options, restricted stock, and stock awards were granted to directors, officers and key employees. The 2016 plan permits the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, or stock awards. The options awarded under the plans have similar characteristics. All stock options are non-qualified and expire ten years from the date of grant. Stock based compensation awarded to directors, officers and employees are exercisable immediately or become exercisable in cumulative installments of 20% or 25% at the end of each year following the date of grant. When stock options are exercised, the Company issues new shares after receipt of exercise proceeds and taxes due, if any, from the grantee. The number of common shares available for future issuance was 569,118 at September 30, 2024.
The Company utilizes the Black-Scholes valuation model for estimating fair value of stock compensation for options awarded to officers and employees. Each grant is evaluated based upon assumptions at the time of grant. The assumptions were no dividend yield, expected volatility between 28.5% and 41.2%, risk-free interest rate of 2.0% to 3.8% and expected life of 5.0 to 7.0 years.
The dividend yield of zero is based on the fact that the Company does not pay cash dividends and has no present intention to pay cash dividends. Expected volatility is estimated based on the Company’s historical experience over a period equivalent to the expected life in years. The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate at the date of grant with a term consistent with the expected life of the options granted. The expected life calculation is based on the observed and expected time to exercise options by the employees.
The Company recorded the following stock compensation expense in its consolidated statements of income (in thousands):
Three Months endedNine Months ended
September 30,September 30,
2024202320242023
Stock option grants$19 $16 $58 $49 
Restricted stock awards314 255 955 773 
Annual director stock award— — 600 600 
Employee stock grant— — — 50 
$333 $271 $1,613 $1,472 
A summary of changes in outstanding options is presented below (in thousands, except share and per share amounts):
OptionsNumber
Of
Shares		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Term (yrs)		Weighted
Average
Grant Date
Fair Value(000's)
Outstanding at January 1, 2024126,880$20.00 3.5$981 
Time-based awards granted12,20031.44 150 
Performance-based awards granted20,33031.44 250 
Outstanding at September 30, 2024159,410$22.33 4.0$1,381 
Exercisable at September 30, 2024126,880$20.00 2.7$981 
Vested during three months ended
September 30, 2024		—$— 
The aggregate intrinsic value of exercisable in-the-money options was $1,252,000 and the aggregate intrinsic value of outstanding in-the-money options was $1,252,000 based on the market closing price of $29.86 on September 30, 2024 less exercise prices.
The unrecognized compensation cost of options granted to FRP employees but not yet vested as of September 30, 2024 was $292,000, which is expected to be recognized over a weighted-average period of 3.8 years.
A summary of changes in restricted stock awards is presented below (in thousands, except share and per share amounts):
Restricted stockNumber
Of
Shares		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Term (yrs)		Weighted
Average
Grant Date
Fair Value(000's)
Non-vested at January 1, 2024109,454$26.47 2.8$2,897 
Time-based awards granted12,78031.30 400 
Performance-based awards granted29,89031.05 928 
Vested(8,684)29.16 (253)
Non-vested at September 30, 2024143,440$27.44 2.8$3,972 
Total unrecognized compensation cost of restricted stock granted but not yet vested as of September 30, 2024 was $2,736,000 which is expected to be recognized over a weighted-average period of 2.8 years.