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Note 7 - Share-based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Text Block]

NOTE 7 – Share-Based Compensation:

Share-based compensation is recorded in selling and administrative expense in the statements of comprehensive income. The following table details the share-based compensation expense by type of award and the total related tax benefit for the periods presented (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Stock options and SARs	$	326	$	345	$	778	$	510
Restricted stock		435		203		638		363
Performance shares		76		114		253		188
Total share-based compensation expense	$	837	$	662	$	1,669	$	1,061

Stock options and Stock Appreciation Rights (“SARs”)

The Company grants stock options and stock-settled SARs to employees that allow them to purchase shares of the Company’s common stock. Stock options are also granted to outside members of the Board of Directors of the Company. The Company determines the fair value of stock options and SARs at the date of grant using the Black-Scholes valuation model.

All stock options and SARs granted prior to August 3, 2018 vested immediately when granted. Awards issued thereafter vest either one or two years after the grant date. Employee awards expire five years after the grant date, and those issued to directors expire ten years after the grant date. The Company issues new shares upon the exercise of stock options and SARs.

A summary of stock option transactions during the six months ended June 30, 2021 follows:

						Weighted Average		Aggregate
	No. of			Weighted Average		Remaining Life		Intrinsic Value
	Shares			Exercise Price		(in years)		(in thousands)
Outstanding, January 1, 2021		970,022		$	12.92		3.74	$	11,128
Granted⁽¹⁾		114,263			25.80
Exercised		(234,092	)		9.96
Lapsed or cancelled		(12,740	)		14.09
Outstanding, June 30, 2021		837,453			15.49		3.60		7,268
Exercisable, June 30, 2021		484,635			14.38		3.07		4,624

(1)	The weighted average grant date fair value of stock options granted was $10.28 per share.

As of June 30, 2021, the Company had $1.2 million in unrecognized compensation related to nonvested stock options to be recognized over the remaining weighted average vesting period of 1.5 years.

A summary of stock-settled SARs transactions during the six months ended June 30, 2021 follows:

						Weighted Average		Aggregate
	No. of			Weighted Average		Remaining Life		Intrinsic Value
	Shares			Exercise Price		(in years)		(in thousands)
Outstanding, January 1, 2021		317,128		$	13.47		3.36	$	2,031
Granted⁽¹⁾		31,687			25.75
Exercised		(21,438	)		16.19
Outstanding, June 30, 2021		327,377			14.48		3.14		3,146
Exercisable, June 30, 2021		165,586			15.08		2.50		1,462

(1)	The weighted average grant date fair value of SARs granted was $10.09 per share.

As of June 30, 2021, the Company had $0.3 million in unrecognized compensation related to nonvested SARs to be recognized over the remaining weighted average vesting period of 1.4 years.

Restricted Stock

The Company has granted shares of restricted stock to directors and certain employees, which vest at a specified future date, generally after three years, ratably over five years or when certain conditions are met. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Incentive Stock and Awards Plan (the “2013 Plan”). Expense for each of these grants is based on the fair value at the date of the grant and is being recognized on a straight-line basis over the respective service period.

A summary of restricted stock transactions during the six months ended June 30, 2021 follows:

				Weighted Average
	No. of			Grant Date
	Shares			Fair Value
Outstanding, January 1, 2021		157,244		$	16.84
Granted		159,889			22.62
Vested		(24,908	)		23.55
Outstanding, June 30, 2021		292,225			19.43

As of June 30, 2021, the Company had $4.2 million of unrecognized compensation cost related to nonvested restricted stock grants expected to be recognized over the remaining weighted average vesting period of 3.8 years.

Performance Shares

Certain employees received service-based or service-based and performance-based shares, to which we collectively refer to as performance shares. The service-based awards vest after the service period is met, which is generally three to five years. Expense for these grants is based on the fair value on the date of the grant and is being recognized on a straight-line basis over the respective service period. The performance-based shares generally vest after five years if the performance and service targets are met. The Company evaluates the performance conditions associated with these grants each reporting period to determine the expected number of shares to be issued. Expenses for grants of performance shares are recognized on a straight-line basis over the respective service period based on the grant date fair value and expected number of shares to be issued. The awards are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan.

A summary of performance share transactions during the six months ended June 30, 2021 follows:

				Weighted Average
	No. of			Grant Date
	Shares			Fair Value
Outstanding, January 1, 2021		186,264		$	18.28
Granted		34,135			23.20
Vested		(57,255	)		17.54
Forfeited		(36,141	)		15.19
Outstanding, June 30, 2021		127,003			20.82

As of June 30, 2021, the Company had $1.3 million of unrecognized compensation cost related to nonvested performance share grants expected to be recognized over the remaining weighted average service period of 3.5 years.