EQUITY

12 Months Ended

Dec. 31, 2021

EQUITY

EQUITY

10. EQUITY

Common Stock

The Company has paid quarterly dividends on its Common Stock since January 1999.

Treasury Stock

On September 19, 2016, the Company’s Board of Directors authorized the repurchase of up to $50.0 million of its Common Stock, from time to time, on the open market or in privately negotiated transactions (the “2016 Repurchase Plan”). As of December 31, 2021, the Company has $20.4 million available to be repurchased under the 2016 Repurchase Plan.

During the years ended December 31, 2021, 2020 and 2019, the Company repurchased the following shares under the 2016 Repurchase Plan:

	Shares	Aggregate Cost		Average
Year ended December 31,	Repurchased	(in thousands)		Repurchase Price
2021	244,798	$	10,546	$	43.08
2020	129,273		6,589		50.97
2019	3,104		162		52.37

During the years ended December 31, 2021, 2020 and 2019, the Company repurchased the following shares from employees to satisfy tax withholding and stock options exercise obligations incurred in connection with the vesting of restricted stock awards and the exercise of stock options:

	Shares	Aggregate Cost		Average
Year ended December 31,	Repurchased	(in thousands)		Repurchase Price
2021	33,271	$	1,713	$	51.49
2020	32,227		1,733		53.78
2019	42,703		2,419		56.65

Stock-Based Compensation

The Company reserved 2,000,000 shares for the grant of stock options, restricted stock awards, restricted stock units, stock equivalents and awards of shares of Common Stock that are not subject to restrictions or forfeiture. As of December 31, 2021, the Company has approximately 463,000 shares available for grants.

Stock Options

Stock options have a term of 10 years and vest annually and ratably over a period of four years.

The following table summarizes stock option activity for the years ended December 31, 2021 and 2020:

	Year Ended December 31, 2021
				Weighted Average
				Remaining
	Number of	Weighted Avg.		Contractual	Aggregate
	Options	Exercise Price		Term (Years)	Intrinsic Value
Outstanding at January 1, 2021	15,000	$	49.34
Granted	—		—
Forfeited	—		—
Expired	—		—
Exercised	10,000		38.30
Outstanding at December 31, 2021	5,000		71.43	3.7	$	—
Vested and expected to vest at December 31, 2021	5,000		71.43	3.7	$	—
Exercisable at December 31, 2021	5,000		71.43	3.7	$	—

	Year Ended December 31, 2020
				Weighted Average
				Remaining
	Number of	Weighted Avg.		Contractual	Aggregate
	Options	Exercise Price		Term (Years)	Intrinsic Value
Outstanding at January 1, 2020	15,000	$	49.34
Granted	—		—
Forfeited	—		—
Expired	—		—
Exercised	—		—
Outstanding at December 31, 2020	15,000		49.34	2.2	$	34,600
Vested and expected to vest at December 31, 2020	15,000		49.34	2.2	$	34,600

The following table summarizes information relating to options granted and exercised during the years ended December 31, 2021, 2020 and 2019 (in thousands, except fair value of options granted data):

	2021		2020		2019
Aggregate intrinsic value of options exercised	$	84	$	—	$	229
Cash proceeds received upon exercise of options		383		—		—

The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing Common Stock price on December 31st and the exercise price, multiplied by the number of the in-the-money stock options) that would have been received by the stock option holders had all stock options holders exercised their stock options on December 31st. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s Common Stock.

The Company has not granted any options since 2017. The Company did not recognize any compensation expense during the three years ended December 31, 2021 related to granted options.

Restricted Stock

Restricted stock issued under the 2008 Equity Investment Plan vests over four years.

The following table summarizes restricted stock activity during the year ended December 31, 2021:

		Weighted Avg.
	Shares	Fair Value
Unvested as of January 1, 2021	223,623	$	54.42
Granted	117,794		48.76
Forfeited	(14,213)		50.86
Vested and issued	(99,136)		55.95
Unvested as of December 31, 2021	228,068	$	51.05

The following table summarizes restricted stock activity during the year ended December 31, 2020:

		Weighted Avg.
	Shares	Fair Value
Unvested as of January 1, 2020	204,146	$	60.13
Granted	116,404		50.45
Forfeited	(3,323)		59.99
Vested and issued	(93,604)		61.75
Unvested as of December 31, 2020	223,623	$	54.42

In connection with the grant of restricted shares, the Company recognized $5.4 million, $5.6 million and $6.4 million of compensation expense within its income statements for the years ended December 31, 2021, 2020, and 2019, respectively. The Company recognized $0.4 million, $0.3 million and $0.5 million of compensation expense within its income statement for the years ended December 31, 2021, 2020, and 2019, respectively, for shares of the Company’s subsidiaries granted to the management team of those subsidiaries.

The unvested shares as of December 31, 2021 represent $7.8 million in unamortized stock based compensation which will be recognized over a weighted average period of 2.4 years.

Performance Based Stock

Performance stock, issued under the 2008 Equity Investment Plan, vests on the third anniversary of the grant date. During the year ended December 31, 2021, the Company granted 43,000 performance stock shares at a fair value of $59.77 per share and recognized $0.7 million of compensation expense during that period. No compensation expense was recognized during the years ended December 31, 2020 or 2019. There were no forfeits or issuances of performance stock shares during the year ended December 31, 2021. All 43,000 shares remained unvested as of December 31, 2021 and represent $1.9 million in unamortized stock based compensation as of that date which will be recognized ratably over the next 2.2 years.