Employee Benefit Plans

12 Months Ended

Dec. 31, 2023

Defined Benefit Plan [Abstract]

Employee Benefit Plans

Note 13. Employee Benefit Plans

401(k) Plan:

The Company provides a deferred salary reduction plan (“Plan”) under Section 401(k) of the Internal Revenue Code covering substantially all employees. After 90 days of service the Company matches 100% of employee contributions up to 3% of compensation and 50% of employee contributions on the next 2% of compensation. The Company’s contribution to the Plan for the years ended December 2023, 2022, and 2021, was $1.8 million, $1.6 million and $1.3 million, respectively.

Equity Incentive Plans:

The Compensation Committee of the Company’s Board of Directors may grant or award eligible participants stock options, restricted stock, restricted stock units, stock appreciation rights, and other stock-based awards or any combination of awards (collectively referred to herein as "Rights"). At December 31, 2023, the Company had one active equity incentive plan available for future grants, the 2015 Stock Incentive Plan, which has 1,674,663 Rights available for future grants or awards.

The Company’s 2015 Stock Incentive Plan has 11,840 Rights issued. In addition, the Company has 4,500 Rights issued from the Cornerstone Non-Qualified Plan Options, which does not have any Rights available for future grants or awards.

Stock Options:

A summary of the activity in these stock option plans is presented in the following table:

		Weighted
		Average
		Exercisable
	Number	Price
Outstanding at December 31, 2021	79,667	$	10.17
Granted	—		—
Exercised	(45,253)		8.75
Forfeited	(2,369)		11.90
Outstanding at December 31, 2022	32,045		12.04
Granted	—		—
Exercised	(15,705)		10.47
Forfeited	—		—
Outstanding at December 31, 2023	16,340		13.55

Information pertaining to options outstanding at December 31, 2023, is as follows:

		Options Outstanding				Options Exercisable
			Weighted-
			Average	Weighted-			Weighted-
			Remaining	Average			Average
Exercise		Number	Contractual	Exercise		Number	Exercise
Prices		Outstanding	Life	Price		Exercisable	Price
$	9.60	4,500	0.17 years	$	9.60	4,500	$	9.60
	15.05	11,840	1.75 years		15.05	11,840		15.05
Outstanding, end of period		16,340	1.31 years	$	13.55	16,340	$	13.55

The Company did not recognize any stock option-based compensation expense for the year ended December 31, 2023, 2022 and 2021, respectively, as all stock options are fully vested. As of December 31, 2023, all options were fully vested and currently no future compensation cost will be recognized related to nonvested stock-based compensation arrangements granted under the Plans.

The intrinsic value of options exercised during the year ended December 31, 2023 and 2022 was $242 thousand and $806 thousand, respectively. The aggregate intrinsic value of total options outstanding and exercisable options at December 31, 2023, was $179 thousand. Cash received from options exercised under all share-based payment arrangements for the period ended December 31, 2023, was $165 thousand.

No options vested during the year ended December 31, 2023, and 2022, respectively. The income tax benefit recognized for the exercise of options during the periods ended December 31, 2023, 2022, and 2021 was $55 thousand, $209 thousand, and $13 thousand, respectively.

Restricted Stock Awards:

A summary of the activity of the Company’s unvested restricted stock awards for the year ended December 31, 2023 is presented below:

The following table summarizes activity relating to non-vested restricted stock awards:

		Weighted
		Average
		Grant-Date
	Number	Fair Value
Balance at December 31, 2022	129,836	$	19.61
Granted	91,582		26.13
Vested	(33,058)		22.24
Forfeited/expired	(16,590)		23.31
Balance at December 31, 2023	171,770	$	22.22

The Company measures the fair value of restricted stock awards based on the price of the Company’s common stock on the grant date, and compensation expense is recorded over the vesting period. The compensation expense for restricted stock awards during the years ended December 31, 2023, 2022 and 2021, was $1.4 million, $1.3 million, and $693 thousand, respectively. As of December 31, 2023, there was $1.5 million of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. The cost is expected to be recognized over a weighted average period of 1.76 years. The grant-date fair value of restricted stock awards vested was $735 thousand for the year ended December 31, 2023.

Stock Appreciation Rights ("SARs"):

When SARs are issued, they are assigned an exercisable price based on the closing stock price on the date of grant.  The SARs are recorded at fair market value and adjusted through salaries and employee benefits expense. The SAR’s will be settled through cash based on the difference of Company’s closing stock price on exercise date and original grant date stock price. SARs compensation expense of ($70) thousand, $93 thousand and $256 thousand was recognized for the years ended December 31, 2023, 2022, and 2021, respectively.  The credit adjustment for the year ended December 31, 2023, is related to the fair value evaluation of SARs.

A summary of the status of SARs plans is presented in the following table:

		Weighted
		Average
	Number	Exercisable Price
Outstanding at December 31, 2021	55,000	$	18.21
Granted	—		—
Exercised	(19,000)		18.12
Forfeited/Expired	—		—
Outstanding at December 31, 2022	36,000		18.25
Granted	—		—
Exercised	(16,000)		15.19
Forfeited/Expired	—		—
Outstanding at December 31, 2023	20,000	$	20.70

Information pertaining to SARs outstanding at December 31, 2023, is as follows:

		SARs Outstanding				SARs Exercisable
			Weighted-
			Average	Weighted-
			Remaining	Average			Weighted- Average
Exercise		Number	Contractual	Exercise		Number	Exercise
Prices		Outstanding	Life		Price	Exercisable	Price
$	20.70	20,000	1.00 years	$	20.70	—	$	—
	Outstanding, end of period	20,000	1.00 years	$	20.70	—	$	—