Stock Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

3. STOCK BASED COMPENSATION

The Company accounts for stock-based compensation under the provisions of ASC Topic 718, “Compensation - Stock Compensation.” The Company recognizes compensation cost in its financial statements for all share-based payments granted, modified, or settled during the period.

For awards with graded vesting, compensation cost is recognized on a straight-line basis over the related vesting period.

For the three months ended March 31, 2023 and 2022, the Company recorded compensation expense of $1,764,000 and $1,661,000, respectively, related to amortization of non-vested stock grants and performance-based awards.

During the three months ended March 31, 2023, no options were exercised by directors of the Company. During the three months ended March 31, 2022, 5,250 options were exercised by directors of the Company at a weighted average exercise price of $32.95 per share.

During the three months ended March 31, 2023, the Company issued 5,400 shares of non-vested stock to employees which vest over a period of five years from the respective grant dates. The per-share fair market value on the date of grant of the non-vested stock issued during the three months ended March 31, 2023 was $97.32, resulting in an aggregate fair value of $0.5 million. During the three months ended March 31, 2023 and 2022, 17,663 and 9,079 shares of non-vested stock, respectively, vested.

During the three months ended March 31, 2023, the Company granted performance-based awards that entitle recipients to earn up to 10,000 shares of Company stock if certain performance criteria are achieved over a three-year period. The Company estimated the aggregate fair value of the awards on the grant date to be $0.6 million.