Share-Based Compensation Arrangements (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Compensation Cost for Share-based Compensation Arrangements

The following table presents share-based compensation expense and the related income tax benefits recognized in the Consolidated Statements of Income for stock options, restricted stock units and performance share units:

(Dollars in thousands)
Years ended December 31,	2021	2020	2019
Share-based compensation expense	$3,316	$3,766	$3,124
Related income tax benefits (1)	$978	$801	$982

(1)Includes $182 thousand and $248 thousand, respectively, of excess tax benefits recognized upon the settlement of share-based compensation awards in 2021 and 2019. Includes $103 thousand of excess tax expenses recognized upon the settlement of share-based compensation awards in 2020.

Stock Options Fair Value Assumptions

The following presents the assumptions used in determining the grant date fair value of the stock option awards granted to certain key employees:

	2021		2020		2019
Options granted	53,700		81,530		61,800
Cliff vesting period (years)	3		3		3
Expected term (years)	6.5		6.5		6.5
Expected dividend yield	3.80	%	3.69	%	3.40	%
Weighted average expected volatility	31.50	%	29.89	%	23.05	%
Weighted average risk-free interest rate	1.41	%	0.46	%	1.71	%
Weighted average grant-date fair value	$11.10		$5.75		$7.44

Stock Options Activity

The following table presents a summary of stock options outstanding as of and for the year ended December 31, 2021:

	Number of Stock Options	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (000’s)
Beginning of period	326,245	$42.44
Granted	53,700	54.59
Exercised	(47,365)	31.87
Forfeited or expired	(10,440)	44.82
End of period	322,140	$45.95	7.17	$3,422
At end of period:
Options exercisable	138,690	$48.81	5.03	$1,112
Options expected to vest in future periods	183,450	$43.78	8.78	$2,310

Schedule of Stock Options Outstanding and Options Exercisable

The following table presents additional information concerning options outstanding and options exercisable at December 31, 2021:

	Options Outstanding			Options Exercisable
Exercise Price Ranges	Number of Shares	Weighted Average Remaining Life (Years)	Weighted Average Exercise Price	Number of Shares	Weighted Average Exercise Price
$20.01 to $30.00	2,900	0.47	$23.27	2,900	$23.27
$30.01 to $40.00	104,048	7.10	33.25	30,198	35.76
$40.01 to $50.00	77,306	6.89	46.67	21,406	41.49
$50.01 to $60.00	137,886	7.52	55.60	84,186	56.24
Total	322,140	7.17	$45.95	138,690	$48.81

Restricted Stock Units Activity

The following table presents a summary of restricted stock units as of and for the year ended December 31, 2021:

	Number of Shares	Weighted Average Grant Date Fair Value
Beginning of period	66,115	$44.80
Granted	19,185	53.00
Vested	(15,543)	52.24
Forfeited	(3,472)	45.28
End of period	66,285	$45.41

Performance Share Units Outstanding

The following table presents a summary of outstanding performance share unit awards as of December 31, 2021:

		Grant Date Fair Value per Share	Weighted Average Current Performance Assumption	Expected Number of Shares
Performance share units awarded in:	2021	$46.15	140%	51,156
	2020	34.22	140%	65,632
	2019	52.84	118%	36,960
	2018	54.25	140%	5,824
Total				159,572

Performance Share Units Activity

The following table presents a summary of performance share units as of and for the year ended December 31, 2021:

	Number of Shares	Weighted Average Grant Date Fair Value
Beginning of period	156,367	$45.43
Granted	40,975	44.46
Vested	(37,770)	54.25
Forfeited	—	—
End of period	159,572	$43.09