Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Activity Under Stock Option Plan

he 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)
Year Ended December 31, 2022
Outstanding at December 31, 2021		1,303,250		$	40.90
Options granted		278,500			87.13
Options exercised		(241,460	)		28.06
Options canceled, forfeited, or expired		(30,000	)		66.31
Outstanding at December 31, 2022		1,310,290			52.51	8.73Yrs	$	46,741
Exercisable at December 31, 2022		489,540			30.82	6.80Yrs	$	28,082
Year Ended December 31, 2021
Outstanding at December 31, 2020		1,343,080		$	35.28
Options granted		179,500			62.13
Options exercised		(214,330	)		23.40
Options canceled, forfeited, or expired		(5,000	)		44.23
Outstanding at December 31, 2021		1,303,250			40.90	8.40Yrs	$	38,656
Exercisable at December 31, 2021		614,875			28.03	7.15Yrs	$	26,153

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:

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Total intrinsic value of options exercised	$	14,837	$	9,264	$	2,315
Cash received from options exercised		6,776		5,015		1,574
Tax benefit realized from options exercised		3,567		2,360		590

Stock-based Employee Compensation Expense

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

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Stock-based compensation expense	$	1,941	$	2,133	$	1,516
Tax benefit		467		513		386
Stock-based compensation expense, net of tax	$	1,474	$	1,620	$	1,130

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:

	December 31, 2022
	(Dollars in thousands)
Unearned stock-based compensation expense	$	13,200

Assumptions Used for Computing Stock-Based Compensation Expense

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

	Year Ended December 31,
	2022		2021		2020
Weighted average grant-date fair value per share of options granted	$	31.90	$	21.16	$	10.85
Risk-free interest rate	1.75 to 4.17%		1.30 to 1.74%		0.64 to 1.13%
Dividend yield	2.00%		2.00%		2.00%
Stock price volatility	34.61 to 35.60%		35.55 to 36.39%		22.84 to 36.1%
Expected term	10 Yrs		10 Yrs		10 Yrs

Summary of Accumulated Stock Units

A summary of the accumulated stock units is as follows:

	December 31,
	2022		2021
Accumulated stock units		129,609		152,754
Average price	$	34.91	$	30.86