Note 20 - Equity Incentive Plans

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

20.         Equity Incentive Plans

Pursuant to the Company’s 2005 Incentive Plan, as amended and restated in May 2015, the Company may grant incentive stock options (employees only), non-statutory stock options, common stock awards, restricted stock, RSUs, stock appreciation rights and cash awards to non-employee directors and eligible employees.

As of December 31, 2023, 1,456,944 shares were available under the 2005 Incentive Plan for future grants.

In addition to stock options, the Company also grants restricted stock units (“RSUs”) that are generally granted at no cost to the recipient. RSUs generally vest ratably over three years or cliff vest after one or three years of continued employment from the date of the grant. While a portion of RSUs may be time-vesting awards, others may vest subject to the attainment of specified performance goals and are referred to as “performance-based RSUs.” All RSUs are subject to forfeiture until vested.

Performance-based RSUs are granted at the target amount of awards. Based on the Company’s attainment of specified performance goals and consideration of market conditions, the number of shares that vest can be adjusted to a minimum of zero and to a maximum of 150% of the target. The amount of performance-based RSUs that are eligible to vest is determined at the end of each performance period and is then added together to determine the total number of performance shares that are eligible to vest. Performance-based RSUs generally cliff vest three years from the date of grant.

Compensation costs for the time-based awards are based on the quoted market price of the Company’s stock at the grant date. Compensation costs associated with performance-based RSUs are based on grant date fair value, which considers both market and performance conditions. Compensation costs of both time-based and performance-based awards are recognized on a straight-line basis from the grant date until the vesting date of each grant.   

The following table presents RSU activity for 2023, 2022, and 2021:

	Time-Based RSUs					Performance-Based RSUs
				Weighted-Average					Weighted-Average
				Grant Date					Grant Date
	Shares			Fair Value		Shares			Fair Value
Balance at December 31, 2020		292,670		$	33.37		302,802		$	32.55
Granted		63,467			41.18		113,764			37.13
Vested		(96,869	)		41.72		(76,292	)		41.69
Forfeited		(23,324	)		29.92		(7,768	)		40.85
Balance at December 31, 2021		235,944		$	32.38		332,506		$	31.82
Granted		67,652			46.69		112,393			40.24
Vested		(89,386	)		40.92		(81,934	)		44.52
Forfeited		(12,151	)		34.07		—			—
Balance at December 31, 2022		202,059		$	33.29		362,965		$	31.56
Granted		86,809			37.92		123,504			38.41
Vested		(92,075	)		34.29		(136,808	)		34.21
Forfeited		(2,404	)		37.77		—			—
Balance at December 31, 2023		194,389		$	34.83		349,661		$	32.94

The compensation expense recorded for RSUs was $7.0 million in 2023, $7.0 million in 2022, and $6.0 million in 2021. Unrecognized stock-based compensation expense related to RSUs was $9.9 million and $9.0 million as of December 31, 2023, and 2022, respectively.  As of December 31, 2023, these costs are expected to be recognized over the next 1.9 years.