Stock-Based Compensation

12 Months Ended

Dec. 31, 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 shares, 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. The Plan authorized the issuance of up to 2.0 million shares of Company common stock.

Restricted Stock

The following is a summary of the Company's restricted stock activity during the year ended December 31, 2022.


	Number of Shares	Weighted Average Price
Outstanding, beginning of year	16,035	$	13.72
Granted	17,722	19.74
Vested	(16,035)	13.72

Outstanding, end of year	17,722	$	19.74

In 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 Company’s 2018 Omnibus Equity Incentive 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 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 Company’s 2018 Omnibus Equity Incentive Plan. These shares vested over a one year period and totaled $220,000 in compensation expense. In 2020, the Company granted 23,852 shares of restricted stock to non-employee directors at a grant date fair value of $14.78 per share under the Company’s 2018 Omnibus Equity Incentive Plan. These shares vested over a one year period and totaled $353,000 in compensation expense.

The total fair value of the restricted stock vested during the year ended December 31, 2022 was approximately $220,000. Compensation expense recognized for restricted stock was $350,000, $330,000 and $242,000 in 2022, 2021 and 2020, respectively. There was no unrecognized compensation expense related to restricted stock grants as of December 31, 2022.

Restricted Stock Units

The following is a summary of the Company's RSU activity during the year ended December 31, 2022.


	Number of RSUs	Weighted Average Price
Outstanding, beginning of year	591,342	$	16.61
Granted	316,419	17.98
Vested	(313,570)	16.85
Forfeited	(4,771)	17.52
Outstanding, end of year	589,420	$	17.21

In 2022, the Company granted 316,419 RSUs at a weighted average grant date fair value of $17.98 per share under the Company’s 2018 Omnibus Equity Incentive Plan. The RSUs vest within a range of two to three years. A portion of these RSUs will vest subject to certain performance conditions in the restricted stock unit agreements. There are also certain provisions in the compensation program which state that if a holder 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 the RSUs granted in 2022 is expected to average approximately $1.9 million per year over a three year period.

In 2021, the Company granted 376,966 RSUs at a weighted average grant date fair value of $17.21 per share under the Company’s 2018 Omnibus Equity Incentive Plan. These RSUs vest within a range of two to three years, with compensation expense expected to average approximately $2.2 million per year over a three year period. In 2020, the Company granted 176,869 RSUs at a weighted average grant date fair value of $15.34 per share under the Company’s 2018 Omnibus Equity Incentive Plan. Compensation expense on these RSUs was expected to average $904,000 per year over a three year period.

Compensation expense for restricted stock units totaled $5.4 million, $3.7 million and $2.4 million in 2022, 2021 and 2020, respectively. In 2022, the Company accelerated RSU vesting for several executives and recognized $772,000 in compensation expense. There was approximately $5.2 million in unrecognized compensation expense related to RSUs as of December 31, 2022, which is expected to be recognized over a period of 1.16 years.

Stock Options

At December 31, 2022 and December 31, 2021, there were no stock options outstanding under the Plan. There were no stock option grants during 2022 or 2021. There were no stock options exercised during 2022, while 2,764 stock options were exercised during 2021 with an intrinsic value of $27,000 and resulted in $19,000 in cash receipts. The aggregate intrinsic value 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. As of December 31, 2022, there was no unrecognized compensation expense related to unvested stock options and there was no compensation expense recognized for stock options for 2022, 2021 and 2020.

For 2022, excess tax benefits on stock based compensation were $69,000, while excess tax deficiencies were $89,000 and $132,000 for 2021 and 2020, respectively.