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Note 7 - Share-based Compensation
3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
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 for the periods presented (in thousands):

 

  

Three Months Ended March 31,

 
  

2022

  

2021

 

Stock options and SARs

 $360  $452 

Restricted stock

  619   203 

Performance shares

  233   177 

Total share-based compensation expense

 $1,212  $832 

 

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. Stock options and SARs granted in tandem with stock options are subject to accelerated vesting under certain circumstances as outlined in the 2013 Incentive Stock and Awards Plan (the “2013 Plan”). 

 

A summary of stock option transactions during the three months ended March 31, 2022 follows:

 

        Weighted Average  Aggregate 
  

No. of

  

Weighted Average

  

Remaining Life

  

Intrinsic Value

 
  

Shares

  

Exercise Price

  

(in years)

  

(in thousands)

 

Outstanding, January 1, 2022

  779,938  $16.12   3.27  $5,097 

Granted(1)

  103,203   20.13         

Exercised

  (21,108)  16.25         

Lapsed or cancelled

  (7,252)  17.85         

Outstanding, March 31, 2022

  854,781   16.59   3.33   2,939 

Exercisable, March 31, 2022

  564,335   13.87   2.66   2,755 

 

(1)

The weighted average grant date fair value of stock options granted was $7.84 per share.

 

As of March 31, 2022, the Company had $1.5 million in unrecognized compensation cost related to nonvested stock options to be recognized over the remaining weighted average vesting period of 1.4 years.

 

A summary of stock-settled SARs transactions during the three months ended March 31, 2022 follows:

 

        Weighted Average  Aggregate 
  

No. of

  

Weighted Average

  

Remaining Life

  

Intrinsic Value

 
  

Shares

  

Exercise Price

  

(in years)

  

(in thousands)

 

Outstanding, January 1, 2022

  291,059  $14.99   2.65  $2,205 

Granted(1)

  37,297   20.13         

Exercised

  (24,836)  15.16         

Lapsed or cancelled

  (2,308)  16.97         

Outstanding, March 31, 2022

  301,212   15.60   2.88   1,227 

Exercisable, March 31, 2022

  232,228   13.48   2.43   1,227 

 

(1)

The weighted average grant date fair value of SARs granted was $7.84 per share.

 

As of March 31, 2022, the Company had $0.4 million in unrecognized compensation cost related to nonvested SARs to be recognized over the remaining weighted average vesting period of 1.5 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, over five years or when certain conditions are met. The shares are subject to accelerated vesting under certain circumstances as outlined in 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 three months ended March 31, 2022 follows:

 

      

Weighted Average

 
  

No. of

  

Grant Date

 
  

Shares

  

Fair Value

 

Outstanding, January 1, 2022

  458,166  $19.51 

Granted

  23,677   20.52 

Vested

  (55,039)  19.50 

Outstanding, March 31, 2022

  426,804   19.57 

 

As of March 31, 2022, the Company had $6.0 million of unrecognized compensation cost related to nonvested restricted stock grants expected to be recognized over the remaining weighted average vesting period of 2.8 years.

 

Performance Shares

 

The Company has granted performance shares, which either contain only service-based vesting conditions or service-based and performance-based vesting conditions. 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 awards 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 on a pro rata basis under certain circumstances as outlined in the 2013 Plan, except in those circumstances in which award agreements or change in control agreements specify full vesting.

 

A summary of performance share transactions during the three months ended March 31, 2022 follows:

 

      

Weighted Average

 
  

No. of

  

Grant Date

 
  

Shares

  

Fair Value

 

Outstanding, January 1, 2022

  193,523  $21.50 

Granted

  59,578   19.55 

Vested

  (15,750)  16.97 

Outstanding, March 31, 2022

  237,351   21.31 

 

As of March 31, 2022, the Company had $3.5 million of unrecognized compensation cost related to nonvested performance share grants expected to be recognized over the remaining weighted average service period of 4.2 years.