Stock-based Compensation Plan

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [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, 2021, the number of shares available to award to employees and directors under the 2015 Stock Incentive Plan was 1,788,367.

During 2019 and 2018, the Company also assumed stock-based compensation plans through the Heritage Bancorp and its subsidiary, Heritage Bank of Nevada (“Heritage”) and Columbine Capital Corp. and its subsidiary, Collegiate Peaks Bank (“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, 2021, 2020 and 2019 was $5,342,000, $4,489,000 and $3,803,000, respectively, and the recognized income tax benefit related to this expense was $1,350,000, $1,134,000 and $964,000, respectively. As of December 31, 2021, total unrecognized compensation expense of $6,865,000 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, 2021, 2020 and 2019 was $4,535,000, $4,048,000 and $3,536,000, respectively, and the income tax benefit related to these awards was $1,369,000, $1,089,000 and $1,124,000, 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, 2021:


	Restricted Stock Units	Weighted- Average Grant Date Fair Value
Non-vested at December 31, 2020	188,894	$	42.81
Granted	148,539	52.01
Vested	(104,037)	43.59
Forfeited	(7,328)	47.97
Non-vested at December 31, 2021	226,068	48.33

The average remaining contractual term on non-vested restricted stock units at December 31, 2021 is 1.0 years. The aggregate intrinsic value of the non-vested restricted stock units at December 31, 2021 was $12,818,000.

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 issued from the Company's authorized and unissued common 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 2021, 2020, or 2019.

Compensation expense related to stock options for the years ended December 31, 2021, 2020, and 2019 was $6,000, $17,000, and $5,415,000, respectively, and the recognized income tax benefit related to this expense was $2,000, $4,000, and $1,372,000. As of December 31, 2021, there was total unrecognized compensation expense of zero related to stock options.

The total intrinsic value of options exercised during the years ended December 31, 2021, 2020, and 2019 was $339,000, $1,221,000, and $4,491,000, respectively, and the income tax benefit related to these exercises was zero and $141,000. Total cash received from options exercised during the years ended December 31, 2021 and 2020 was $265,000 and $993,000, respectively.

Changes in shares granted for stock options for the year ended December 31, 2021 are summarized as follows:


	Stock Options	Weighted- Average Exercise Price
Outstanding at December 31, 2020	27,037	$	23.81

Exercised	(11,867)	22.35
Forfeited	—	—
Outstanding at December 31, 2021	15,170	24.96
Exercisable at December 31, 2021	15,170	24.96

The average remaining contractual term on outstanding stock options at December 31, 2021 is 4.7 years. The aggregate intrinsic value of the outstanding stock options at December 31, 2021 was $482,000.