Stock-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

The Amended and Restated Omnibus Stock and Performance Compensation Plan (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. The Company may issue shares out of treasury stock for these awards. During the three months ended March 31, 2022, 40,462 restricted shares, 57,542 performance-based restricted shares, and no SARs were granted under the Omnibus Plan. Stock-based compensation expense for the three months ended March 31, 2022 and 2021 was $1,090,000 and $693,000, respectively.

Restricted Stock

Restricted shares granted to Company employees are amortized to expense over a 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.

As of March 31, 2022, the total unrecognized compensation expense related to non-vested restricted shares was $2,625,000, and the related weighted-average period over which it is expected to be recognized is approximately 1.01 years.

Following is a summary of the activity of the Company's restricted stock for the three months ended March 31, 2022, with total shares and weighted average fair value:


	Three Months Ended March 31, 2022
	Shares	Fair Value
Balance at December 31, 2021	165,553	$	44.81
Granted	40,462	39.45
Vested	(21,836)	49.09

Balance at March 31, 2022	184,179	$	43.13

Performance-Based Restricted Stock

The Company has granted three-year performance-based restricted stock (“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 for the three months ended March 31, 2022, based on 100% of target value:


	Three Months Ended March 31, 2022
	Shares	Fair Value
Balance at December 31, 2021	116,543	$	46.79
Granted	57,542	39.58
Vested	(33,668)	49.09

Balance at March 31, 2022	140,417	$	43.20

The PBRS that vested during the three months ended March 31, 2022 were based on the Company's achievement of 52.9% of target financial goals, resulting in the issuance of 17,810 shares of common stock. The outstanding PBRS at March 31, 2022 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

There were no SARs granted and no expense recognized during the three months ended March 31, 2022. Following is a summary of the activity of the Company’s SARs program for the three months ended March 31, 2022:


	Shares	Weighted- Average Exercise Price		Average Remaining Contractual Term Years	Aggregate Intrinsic Value (In thousands)
Balance at December 31, 2021	117,089	$	34.91	1.21	$	741
Exercised	(23,976)	27.78		—	—

Exercisable at March 31, 2022	93,113	$	36.75	1.16	$	313

There were no non-vested SARs at March 31, 2022.