Share-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

The 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 nine months ended September 30, 2022:


	Number of Shares	Weighted Average Price
Outstanding, January 1, 2022	16,035	$	13.72
Granted	17,722	19.74
Vested	(16,035)	13.72

Outstanding, September 30, 2022	17,722	$	19.74

In the first nine months of 2022, the Company granted 17,722 shares of restricted stock to non-employee directors at a grant date fair value of $19.74 per share under the Plan. The restricted stock vests one year from the date it was granted. Compensation expense on this restricted stock is expected to be $350,000 over a one year period. In the first nine months of 2021, the Company granted 16,035 shares of restricted stock to non-employee directors at a grant date fair value of $13.72 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 $87,000 and $88,000 for the third quarter of 2022 and 2021, respectively, and $262,000 and $264,000 for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was unrecognized compensation cost of $87,000 related to unvested restricted stock that is expected to be recognized over a weighted average period of approximately 0.3 years.

Restricted Stock Units

The following is a summary of the Company’s RSU activity during the nine months ended September 30, 2022:


	Number of Shares	Weighted Average Price
Outstanding, January 1, 2022	591,342	$	16.64
Granted	315,419	17.99
Vested	(206,670)	16.64
Forfeited	(4,081)	17.66
Outstanding, September 30, 2022	696,010	$	17.25

In the first nine months of 2022, the Company granted 315,419 RSUs under the Plan at a weighted average grant date fair value of $17.99 per share. These units vest within a range of 2 to 3 years. A portion of these RSUs will vest subject to certain performance conditions in the applicable RSU 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 these RSUs is expected to average approximately $1.9 million per year over a three-year period. In the first nine months of 2021, the Company granted 375,716 RSUs under the Plan at a weighted average grant date fair value of $17.20 per share. Compensation expense on these RSUs is expected to average approximately $2.2 million per year over a three-year period.

For the third quarter of 2022 and 2021, the Company recognized share-based compensation expense on RSUs of $1.1 million and $871,000, respectively, and $3.5 million and $2.9 million for the nine months ended September 30, 2022 and 2021, respectively. Unrecognized compensation expense related to RSUs was approximately $7.1 million as of September 30, 2022, and that cost is expected to be recognized over a period of 1.34 years.

Stock Options

At September 30, 2022 and December 31, 2021, there were no stock options outstanding under the Plan. There were no stock option grants in the first nine months of 2022 or 2021. There were no stock options exercised during the third quarter of 2022 and the 2,764 stock options that were exercised during the first nine months of 2021 resulted in $19,000 in cash receipts and had an aggregate intrinsic value of $27,000.