• Filing Date: 2020-03-06
  • Form Type: 10-K
  • Description: Annual report
v3.19.3.a.u2
Stock-Based Compensation
12 Months Ended
Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 21 -- Stock-Based Compensation

Incentive Plan

 

The Company currently has outstanding stock-based awards granted under its 2007 Stock Option and Incentive Plan and 2012 Omnibus Incentive Plan. Only the 2012 Plan is active and available for future grants. With respect to the 2012 Plan, the Company may grant stock-based awards to employees, directors, consultants, and advisors of the Company. At December 31, 2019, there were 1,761,804 shares available for grant.

 

Stock Options

 

Stock options granted and outstanding under the incentive plans vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years.

 

A summary of the stock option activity for the years ended December 31, 2019, 2018 and 2017 is as follows (option amounts not in thousands):

 

 

 

Number of

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term

 

Aggregate

Intrinsic

Value

 

Outstanding at January 1, 2017

 

 

50,000

 

 

$

4.02

 

 

2.3 years

 

$

1,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Granted

 

 

110,000

 

 

$

40.00

 

 

 

 

 

 

 

Exercised

 

 

(30,000

)

 

$

2.50

 

 

 

 

 

 

 

Outstanding at December 31, 2017

 

 

130,000

 

 

$

34.82

 

 

8.2 years

 

$

472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Granted

 

 

110,000

 

 

$

40.00

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

240,000

 

 

$

37.19

 

 

8.8 years

 

$

3,278

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Granted

 

 

110,000

 

 

$

53.00

 

 

 

 

 

 

 

Exercised

 

 

(10,000

)

 

$

6.30

 

 

 

 

 

 

 

Outstanding at December 31, 2019

 

 

340,000

 

 

$

43.21

 

 

7.9 years

 

$

1,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at December 31, 2019

 

 

92,500

 

 

$

36.36

 

 

6.8 years

 

$

868

 

 

The following table summarizes information about options exercised for the years ended December 31, 2019, 2018 and 2017 (option amounts not in thousands):

 

 

 

2019

 

 

2018

 

 

2017

 

Options exercised

 

 

10,000

 

 

 

 

 

 

30,000

 

Total intrinsic value of exercised options

 

$

347

 

 

$

 

 

$

1,319

 

Tax benefits realized

 

$

85

 

 

$

 

 

$

509

 

 

For the years ended December 31, 2019, 2018 and 2017, the Company recognized $870, $521 and $306, respectively, of compensation expense which was included in general and administrative personnel expenses. Deferred tax benefits related to stock options were $22, $79 and $78 for the years ended December 31, 2019, 2018 and 2017, respectively. At December 31, 2019 and 2018, there was $1,835 and $1,359, respectively, of unrecognized compensation expense related to nonvested stock options. The Company expects to recognize the remaining compensation expense over a weighted-average period of 2.4 years.

 

The following table provides assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the stock options granted during the years ended December 31, 2019, 2018 and 2017:

 

 

 

2019

 

 

2018

 

 

2017

 

Expected dividend yield

 

 

3.34

%

 

 

4.00

%

 

 

3.53

%

Expected volatility

 

 

40.17

%

 

 

42.22

%

 

 

42.86

%

Risk-free interest rate

 

 

2.53

%

 

 

2.57

%

 

 

1.92

%

Expected life (in years)

 

 

5

 

 

 

5

 

 

 

5

 

 

Restricted Stock Awards

 

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants include only service conditions. The determination of fair value with respect to the awards with only service-based conditions is based on the market value of the Company’s stock on the grant date.

Information with respect to the activity of unvested restricted stock awards during the years ended December 31, 2019, 2018 and 2017 is as follows:

 

 

 

Number of

Restricted

Stock

Awards

 

 

Weighted

Average

Grant Date

Fair Value

 

Nonvested at January 1, 2017

 

 

542,503

 

 

$

30.81

 

Granted

 

 

154,936

 

 

$

42.92

 

Vested

 

 

(75,983

)

 

$

37.95

 

Forfeited

 

 

(23,766

)

 

$

36.32

 

Nonvested at December 31, 2017

 

 

597,690

 

 

$

32.82

 

 

 

 

 

 

 

 

 

 

Granted

 

 

189,860

 

 

$

41.81

 

Vested

 

 

(98,617

)

 

$

40.82

 

Forfeited

 

 

(56,637

)

 

$

36.46

 

Nonvested at December 31, 2018

 

 

632,296

 

 

$

33.33

 

 

 

 

 

 

 

 

 

 

Granted

 

 

180,404

 

 

$

42.79

 

Vested

 

 

(116,164

)

 

$

40.10

 

Forfeited

 

 

(299,776

)

 

$

25.31

 

Nonvested at December 31, 2019

 

 

396,760

 

 

$

41.71

 

 

The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $5,590, $4,111 and $4,217 for the years ended December 31, 2019, 2018 and 2017, respectively. At December 31, 2019 and 2018, there was approximately $12,661 and $11,199, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 2.6 years. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the years ended December 31, 2019, 2018 and 2017.

 

 

 

2019

 

 

2018

 

 

2017

 

Deferred tax benefits recognized

 

$

1,075

 

 

$

862

 

 

$

970

 

Tax benefits realized for restricted stock and paid dividends

 

$

1,129

 

 

$

1,086

 

 

$

1,396

 

Fair value of vested restricted stock

 

$

4,658

 

 

$

4,025

 

 

$

2,884

 

 

During 2019, 284,000 shares of the Company’s restricted stock awards granted to employee and nonemployee directors were forfeited for not meeting their market-based vesting conditions. Any dividend payment associated with these awards during 2019 was expensed when declared. As a result, for the year ended December 31, 2019, the Company recognized dividends of $237 in general and administrative personnel expenses for $170 and in other operating expenses for $67.  

 

During 2018, the Company reclassified from retained income dividends of $1,887 cumulatively paid on unvested restricted stock awards with market based vesting conditions to general and administrative personnel expenses for $1,346 and to other operating expenses for $541. These awards, of which the market conditions would not have been met, were granted to the Company’s employee and nonemployee directors during 2013. As a result, for the year ended December 31, 2018, the Company recognized dividends of $195 related to these awards in general and administrative personnel expenses for $159 and in other operating expenses for $36.

 

During the years ended December 31, 2019, 2018 and 2017, no awards were issued with other than service-based vesting conditions.