Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Activity Under Stock Option Plan

The following table is a summary of the activity under both the Employee Plan and the Non-Employee Directors’ Plan:

						Wgtd. Avg.
				Wgtd. Avg.		Remaining	Aggregate
				Exercise		Contractual	Intrinsic
	Options			Price		Term	Value
	(Dollars in thousands, except option data)
Nine Months Ended September 30, 2022
Outstanding at December 31, 2021		1,303,250		$	40.90
Options granted		231,000			85.50
Options exercised		(236,585	)		27.80
Options canceled, forfeited, or expired		(30,000	)		66.31
Outstanding at September 30, 2022		1,267,665			50.87	8.23 Yrs	$	48,933
Exercisable at September 30, 2022		467,790			30.35	6.93 Yrs	$	27,654

Options Exercised Under Stock Option Plan

The following table has additional information regarding options exercised under both the Employee Plan and the Non-Employee Directors’ Plan:

	Three Months Ended  September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands)				(Dollars in thousands)
Total intrinsic value of options exercised	$	5,638	$	—	$	14,581	$	7,860
Cash received from options exercised		2,285		—		6,577		4,379
Tax benefit realized from options exercised		1,355		—		3,505		2,002

Stock-based Employee Compensation Expense

The following table is a summary of the Company’s recorded stock-based compensation expense:

	Three Months Ended  September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands)				(Dollars in thousands)
Stock-based compensation expense	$	627	$	555	$	1,545	$	1,604
Tax benefit		151		134		372		386
Stock-based compensation expense, net of tax	$	476	$	421	$	1,173	$	1,218

Unearned Stock-based Compensation Expense

The Company will continue to amortize the unearned stock-based compensation expense over the remaining vesting period of approximately seven years. The following table shows the unearned stock-based compensation expense:

	September 30, 2022
	(Dollars in thousands)
Unearned stock-based compensation expense	$	12,078

Assumptions Used for Computing Stock-Based Compensation Expense

The following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during the periods presented:

	Nine Months Ended September 30,
	2022		2021
Weighted average grant-date fair value per share of options granted	$	30.72	$	20.92
Risk-free interest rate	1.75 to 3.25%		1.30 to 1.74%
Dividend yield	2.00%		2.00%
Stock price volatility	34.61 to 34.85%		35.55 to 36.27%
Expected term	10 Yrs		10 Yrs

Summary of Accumulated Stock Units

A summary of the accumulated stock units is as follows:

	September 30,		December 31,
	2022		2021
Accumulated stock units		142,065		152,754
Average price	$	33.77	$	30.86