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.