Stock-based Compensation Plan

12 Months Ended

Dec. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The Company’s stock-based compensation plan, The 2015 Stock Incentive Plan, provides incentives and awards to select employees and directors of the Company and permits the granting of stock options, share appreciation rights, restricted shares, restricted share units, unrestricted shares and performance awards. At December 31, 2019, the number of shares available to award to employees and directors under the 2015 Stock Incentive Plan was 2,041,367.

During 2019 and 2018, the Company also assumed stock-based compensation plans through the Heritage and Collegiate acquisitions, respectively. No additional shares may be awarded from these plans.

Restricted Stock Units

The Company has awarded restricted stock units to select employees and directors under the 2015 Stock Incentive Plan. Common stock is issued as vesting restrictions lapse, which may be immediately or according to the terms of a vesting schedule. Restricted stock units may not be sold, pledged or otherwise transferred until restrictions have lapsed. The recipient does not have the right to vote or to receive dividends until the restricted stock unit has vested. The fair value of the restricted stock unit is the closing price of the Company’s common stock on the award date.

Compensation expense related to restricted stock units for the years ended December 31, 2019, 2018 and 2017 was $3,803,000, $3,684,000 and $3,764,000, respectively, and the recognized income tax benefit related to this expense was $964,000, $934,000 and $1,452,000. As of December 31, 2019, total unrecognized compensation expense of $4,434,000 related to restricted stock units is expected to be recognized over a weighted-average period of 2.0 years.

The fair value of restricted stock units that vested during the years ended December 31, 2019, 2018 and 2017 was $3,536,000, $3,319,000 and $3,746,000, respectively, and the income tax benefit related to these awards was $1,124,000, $1,126,000 and $1,998,000, respectively. Upon vesting of restricted stock units, the shares are issued from the Company’s authorized stock balance.

The following table summarizes the restricted stock unit activity for the year ended December 31, 2019:


	Restricted Stock Units	Weighted- Average Grant Date Fair Value
Non-vested at December 31, 2018	181,983	$	36.03
Granted	101,978	42.96
Vested	(103,473)	34.17
Forfeited	(3,827)	40.80
Non-vested at December 31, 2019	176,661	41.01

The average remaining contractual term on non-vested restricted stock units at December 31, 2019 is 0.9 years. The aggregate intrinsic value of the non-vested restricted stock units at December 31, 2019 was $8,125,000.

Stock Options

During 2019 and 2018, the Company assumed stock options through the Heritage and Collegiate acquisitions, respectively. All stock option shares and per share market values were adjusted at acquisition dates. The option price at which the Company's common stock may be purchased upon exercise of stock options granted under the plans must be at least equal to the per share market value of such stock at the date the option was granted. Upon exercise of the stock options, the shares are obtained from the Company's authorized and unissued stock. Prior to the Heritage and Collegiate stock options being assumed, there were no outstanding stock options and there were no stock options granted during 2019, 2018 or 2017.

Compensation expense related to stock options for the years ended December 31, 2019 and 2018 was $5,415,000 and $19,000, respectively, and the recognized income tax benefit related to this expense was $1,372,000 and $5,000. As of December 31, 2019, total unrecognized compensation expense of $23,000 related to stock options is expected to be recognized over a weighted-average period of 1.4 years.

The total intrinsic value of options exercised during the years ended December 31, 2019 and 2018 was $4,491,000 and $13,000, respectively, and the income tax benefit related to these exercises was $934,000 and $0. Total cash received from options exercised during the years ended December 31, 2019 and 2018 was $2,896,000 and $24,000, respectively.

Changes in shares granted for stock options for the year ended December 31, 2019 are summarized as follows:


	Stock Options	Weighted- Average Exercise Price
Outstanding at December 31, 2018	26,167	$	25.84
Acquisitions	235,246	16.70
Exercised	(175,161)	16.53
Forfeited	(2,787)	25.84
Outstanding at December 31, 2019	83,465	19.61
Exercisable at December 31, 2019	72,315	18.65

The average remaining contractual term on outstanding stock options at December 31, 2019 is 5.7 years. The aggregate intrinsic value of the outstanding stock options at December 31, 2019 was $2,202,000.