Share-Based Compensation

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-Based CompensationThe Company's 2018 Omnibus Equity Incentive Plan (the "Plan") authorizes the granting of incentive stock options, supplemental stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), other stock-based awards and cash-based awards to officers, employees and non-employee directors of, and consultants and advisors to, the Company and its subsidiaries.

Restricted Stock

The following is a summary of the Company’s restricted stock activity during the three months ended March 31, 2021:


	Number of Shares	Weighted Average Price
Outstanding, January 1, 2021	23,910	$	14.77
Granted	16,028	13.72
Vested	(13,092)	16.87

Outstanding, March 31, 2021	26,846	$	13.13

In the first three months of 2021, the Company granted 16,028 shares of restricted stock to non-employee directors at a grant date fair value of $13.72 per share under the 2018 Omnibus Equity Incentive Program. The restricted stock vests one year from the date it was granted. Compensation expense on this restricted stock is expected to be $220,000 over a one year period. In the first three months of 2020, the Company granted 13,041 shares of restricted stock to non-employee directors at a grant date fair value of $16.87 per share. The restricted stock vested one year from the date it was granted with a compensation expense of $220,000 over such period.

The Company recognized share-based compensation expense on its restricted stock of $88,000 and $54,000 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, there was unrecognized compensation cost of $242,000 related to unvested restricted stock that is expected to be recognized over a weighted average period of approximately 0.74 years.

Restricted Stock Units

The following is a summary of the Company’s RSU activity during the three months ended March 31, 2021:


	Number of Shares	Weighted Average Price
Outstanding, January 1, 2021	372,552	$	16.63
Granted	258,154	16.22
Vested	(129,224)	18.14
Forfeited	(761)	16.03
Outstanding, March 31, 2021	500,721	$	16.03

In the first three months of 2021, the Company granted 258,154 RSUs under the 2018 Omnibus Equity Incentive Plan at a weighted average grant date fair value of $16.22 per share. These units vest within a range of two to three years. A portion of these RSUs will vest subject to certain performance conditions in the applicable restricted stock unit agreement. There are also certain provisions in the compensation program which state that if a recipient of the RSUs reaches a certain age and years of service, the person has effectively earned a portion of the RSUs at that time. Compensation expense on RSUs issued in the first three months of 2021 is expected to average approximately $1.4 million per year over a three-year period. In the first three months of 2020, the Company granted 169,169 RSUs under the Company’s 2018 Omnibus Equity Incentive Plan at a weighted average grant date fair value of $15.56 per share. Compensation expense on these RSUs is expected to average approximately $877,000 per year over a three-year period.

The Company recognized share based compensation expense of $1.1 million and $794,000 on RSUs for the three months ended March 31, 2021 and 2020, respectively. Unrecognized compensation expense related to RSUs was approximately $5.5 million as of March 31, 2021, and that cost is expected to be recognized over a period of 1.7 years.

Stock Options

A summary of the activity under the Company’s stock option plans as of March 31, 2021 is as follows:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, January 1, 2021	2,764	$	6.94	1.07	$	15,934

Exercised	(1,757)	7.13


Outstanding, March 31, 2021	1,007	$	6.61	1.19	$	10,905
Options exercisable at March 31, 2021	1,007	$	6.61	1.19	$	10,905

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, which is the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options.

There were no stock option grants in the first three months of 2021 or 2020. The 1,757 stock options exercised during the first three months of 2021 resulted in $13,000 in cash receipts. No stock options were exercised during the first three months of 2020. There was no unrecognized compensation expense related to unvested stock options as of March 31, 2021.