Share-Based Compensation

3 Months Ended

Mar. 31, 2023

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 three months ended March 31, 2023:


	Number of Shares	Weighted Average Price
Outstanding, January 1, 2023	17,722	$	19.74
Granted	18,520	17.95
Vested	(17,722)	19.74

Outstanding, March 31, 2023	18,520	$	17.95

In the first three months of 2023, the Company granted 18,520 shares of restricted stock to non-employee directors at a grant date fair value of $17.95 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 $332,000 over a one year period. In the first three 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. The restricted stock vested one year from the date it was granted with a compensation expense of $350,000 over such period.

The Company recognized share-based compensation expense on its restricted stock of $83,000 and $87,000 for the first quarter of 2023 and 2022, respectively. As of March 31, 2023, there was unrecognized compensation cost of $249,000 related to unvested restricted stock that is expected to be recognized over a weighted average period of approximately 0.8 years.

Restricted Stock Units

The following is a summary of the Company’s RSU activity during the three months ended March 31, 2023:


	Number of Shares	Weighted Average Price
Outstanding, January 1, 2023	589,420	$	17.21
Granted	269,070	19.15
Vested	(219,695)	16.27
Forfeited	(1,932)	18.56
Outstanding, March 31, 2023	636,863	$	18.35

In the first three months of 2023, the Company granted 269,070 RSUs under the Plan at a weighted average grant date fair value of $19.15 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 $1.7 million per year over a three-year period. In the first three months of 2022, the Company granted 298,554 RSUs under the Plan at a weighted average grant date fair value of $18.07 per share. Compensation expense on these RSUs is expected to average approximately $1.8 million per year over a three-year period.

For the first quarter of 2023 and 2022, the Company recognized share-based compensation expense on RSUs of $1.6 million and $1.4 million. Unrecognized compensation expense related to RSUs was approximately $8.6 million as of March 31, 2023, and that cost is expected to be recognized over a period of 1.73 years.

Stock Options

At March 31, 2023 and December 31, 2022, there were no stock options outstanding under the Plan. There were no stock option grants in the first three months of 2023 or 2022. There were no stock options exercised during the first three months of 2023 or 2022.