Stock-based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

The Amended and Restated Omnibus Stock and Performance Compensation Plan (the “Omnibus Plan”) provides incentive opportunities for key employees and non-employee directors and to align the personal financial interests of such individuals with those of the Company’s shareholders. The Omnibus Plan permits the issuance of up to 1,500,000 shares of the Company’s common stock in the form of stock options, SARs, restricted stock, restricted stock units and performance awards.

Restricted Stock

Restricted shares granted to Company employees are amortized to expense over the three-year cliff vesting period. Restricted shares granted to members of the Board of Directors are amortized to expense over a one-year service period, with the exception of those shares granted in lieu of cash payments for retainer fees which are expensed in the period earned.

Changes in restricted shares outstanding for the year ended December 31, 2021 were as follows:


	Shares	Weighted Average Grant Date Fair Value
Balance at December 31, 2020	136,167	$	46.78
Granted	53,906	$	41.55
Vested	(23,782)	$	48.43
Forfeited	(738)	$	46.07
Balance at December 31, 2021	165,553	$	44.81

During 2020 and 2019, 38,226 and 36,812 shares, respectively, were granted with weighted average per share market values at date of grant of $47.07 in 2020 and $49.30 in 2019. The fair value of such shares are based on the market price on the date of grant. Amortization of the restricted stock bonus awards totaled $1,793,000 for 2021, $1,463,000 for 2020 and $1,551,000 for 2019. As of December 31, 2021, the total unrecognized compensation expense related to non-vested restricted stock awards was $1,647,000, and the related weighted average period over which it is expected to be recognized is approximately 0.57 years. The total fair value of shares vested during the years ended December 2021, 2020, and 2019 was $1,152,000, $1,005,000, and $527,000, respectively.

Performance-Based Restricted Stock

The Company has granted three-year PBRS awards which are contingent upon the Company’s achievement of pre-established financial goals over a three-year cliff vest period. The number of shares issued ranges from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period.

Following is a summary of the activity of the PBRS, based on 100% of target value:


	For the Years Ended December 31, 2021
	Shares	Fair Value
Balance at December 31, 2020	98,410	$	50.64
Granted	52,240	40.74
Vested	(33,000)	49.07
Forfeited	(1,107)	46.07
Balance at December 31, 2021	116,543	$	46.79

The PBRS that vested during the year ended December 31, 2021 achieved financial goals of 94.4%, resulting in the issuance of 31,150 shares of common stock. The PBRS that vested during the year ended December 31, 2020 achieved financial goals of 117.3%, resulting in the issuance of 34,222 shares of common stock. The outstanding PBRS at December 31, 2021 will vest at scheduled vesting dates and the actual number of shares of common stock issued will range from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the respective three-year performance period.

SARs

During 2021, there were no SARs granted and no expense recognized. As of December 31, 2021, there was no unrecognized compensation expense related to SARs.

Changes in SARs outstanding for the year ended December 31, 2021 were as follows:


	SARs	Weighted Average Exercise Price
Balance at December 31, 2020	144,999	$	32.99
Exercised	(25,822)	24.38
Forfeited	(2,088)	31.92
Balance at December 31, 2021	117,089	34.91
Exercisable at December 31, 2021	117,089	$	34.91

The total intrinsic value of SARs exercised during 2021 and 2020 was $630,000 and $275,000, respectively. The average remaining contractual term for SARs outstanding as of December 31, 2021 was 1.21 years, and the aggregate intrinsic value was $741,000. The average remaining contractual term for SARs outstanding as of December 31, 2020 was 1.95 years, and the aggregate intrinsic value was $1,095,000.

The total compensation cost for share-based payment arrangements was $2,859,000, $2,267,000, and $3,144,000, in 2021, 2020, and 2019, respectively.