Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

The Company’s Board of Directors has adopted various stock-based compensation plans, including the 2023 Stock and Incentive Plan that was approved by shareholders and became effective April 18, 2023. The plans provide for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock units and stock awards. Pursuant to the plans, shares are reserved for future issuance by the Company upon exercise of stock options or awards of restricted stock, restricted stock units, performance stock units or stock awards granted to directors, officers and other key employees or consultants.

The table below summarizes the transactions under the Company’s active stock-based compensation plans for the six months ended June 30, 2024: 

	Stock Options Outstanding			Non-vested Stock Awards Outstanding			Non-vested Stock Units Outstanding
(Shares in thousands)	Number of Shares	Weighted Average Exercise Price		Number of Shares	Weighted Average Grant-Date Fair Value		Number of Shares	Weighted Average Grant-Date Fair Value
Beginning balance, January 1, 2024	447	$	22.56	—	$	—	1,273	$	24.23
Granted	—	—		—	—		845	18.79
Stock options exercised	—	—		—	—		—	—
Stock awards/units vested (earned)	—	—		—	—		(355)	25.23
Forfeited/expired	(37)	22.52		—	—		(150)	26.07
Balance, June 30, 2024	410	$	22.57	—	$	—	1,613	$	21.00
Exercisable, June 30, 2024	410	$	22.57

The following table summarizes information about stock options under the plans outstanding at June 30, 2024:

					Options Outstanding			Options Exercisable
Range of Exercise Prices					Number of Shares (In thousands)	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price	Number of Shares (In thousands)	Weighted Average Exercise Price
$	20.29	—	$	20.29	42	0.51	$20.29	42	$20.29
22.20		—	22.20		51	0.74	22.20	51	22.20
22.75		—	22.75		249	1.12	22.75	249	22.75
23.51		—	23.51		61	1.56	23.51	61	23.51
24.07		—	24.07		7	1.22	24.07	7	24.07
$	20.29	—	$	24.07	410	1.08	$22.57	410	$22.57

The table below summarizes the Company’s performance stock unit activity for the six months ended June 30, 2024:

(In thousands)	Performance Stock Units
Non-vested, January 1, 2024	492
Granted	188
Vested (earned)	(42)
Forfeited	(108)
Non-vested, June 30, 2024	530

Stock-based compensation expense was $7.5 million and $8.0 million during the six month periods ended June 30, 2024 and 2023, respectively. Stock-based compensation expense is recognized ratably over the requisite service period for all stock-based awards. There was no unrecognized stock-based compensation expense related to stock options at June 30, 2024. Unrecognized stock-based compensation expense related to non-vested stock awards and stock units was $19.7 million at June 30, 2024. At such date, the weighted-average period over which this unrecognized expense is expected to be recognized was 1.8 years.

There was no intrinsic value of stock options outstanding and stock options exercisable at June 30, 2024. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $17.58 as of June 30, 2024, and the exercise price multiplied by the number of options outstanding. There was no intrinsic value of stock options exercised during the six months ended June 30, 2024 and there was $6,000 of intrinsic value of stock options exercised during the same period of 2023.

The fair value of the Company’s employee stock options granted is estimated on the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. There were no stock options granted during the six months ended June 30, 2024 and 2023.