Share-Based Compensation Arrangements (Tables)

12 Months Ended

Dec. 31, 2022

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,	2022	2021	2020
Share-based compensation expense	$3,247	$3,316	$3,766
Related income tax benefits (1)	$857	$978	$801

(1)Includes $78 thousand and $182 thousand, respectively, of excess tax benefits recognized upon the settlement of share-based compensation awards in 2022 and 2021. 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:

	2022		2021		2020
Options granted	57,700		53,700		81,530
Cliff vesting period (years)	3		3		3
Expected term (years)	6.5		6.5		6.5
Expected dividend yield	3.90	%	3.80	%	3.69	%
Weighted average expected volatility	31.67	%	31.50	%	29.89	%
Weighted average risk-free interest rate	4.15	%	1.41	%	0.46	%
Weighted average grant-date fair value	$12.01		$11.10		$5.75

Stock Options Activity

The following table presents a summary of stock options outstanding as of and for the year ended December 31, 2022:

	Number of Stock Options	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (000’s)
Beginning of period	322,140	$45.95
Granted	57,700	48.50
Exercised	(7,950)	30.67
Forfeited or expired	—	—
End of period	371,890	$46.67	6.95	$1,514
Options exercisable at end of period	186,640	$49.54	5.20	$410

Schedule of Stock Options Outstanding and Options Exercisable

The following table presents additional information concerning options outstanding and options exercisable at December 31, 2022:

	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
$30.01 to $40.00	98,998	6.32	33.17	25,148	35.92
$40.01 to $50.00	135,006	7.68	47.45	77,306	46.67
$50.01 to $60.00	137,886	6.69	55.60	84,186	56.24
Total	371,890	6.95	$46.67	186,640	$49.54

Restricted Stock Units Activity

The following table presents a summary of restricted stock units as of and for the year ended December 31, 2022:

	Number of Shares	Weighted Average Grant Date Fair Value
Beginning of period	66,285	$45.41
Granted	21,467	50.03
Vested	(22,416)	49.52
Forfeited	(24)	52.18
End of period	65,312	$45.51

Performance Share Units Outstanding

The following table presents a summary of outstanding performance share units as of December 31, 2022:

		Grant Date Fair Value per Share	Weighted Average Current Performance Assumption	Expected Number of Shares
Performance share units awarded in:	2022	$59.31	130%	39,676
	2021	46.15	120%	43,848
	2020	34.22	120%	56,256
	2018	54.25	124%	5,158
Total				144,938

Performance Share Units Activity

The following table presents a summary of performance share units as of and for the year ended December 31, 2022:

	Number of Shares	Weighted Average Grant Date Fair Value
Beginning of period	159,572	$43.09
Granted (1)	21,379	59.31
Vested	(34,573)	52.87
Forfeited	(1,440)	52.18
End of period	144,938	$45.41

(1)The number of shares include adjustments made to performance measure estimates on outstanding awards that have not yet vested. The weighted average grant date fair value pertains only to awards granted during the year.