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Share-Based Compensation (Tables) | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Summary of Stock Option Assumptions | The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the nine months ended September 30, 2023 and 2022 using a Black Scholes-Merton Model:
| Nine months ended
| September 30, 2023 |  | September 30, 2022
Directors and SLT 1: |  |  |
Expected (annual) dividend rate | $0.32 |  | $0.25
Expected volatility | 37.89% |  | 36.00%
Risk-free interest rate | 4.39% |  | 2.21%
Expected life (in years) | 4.0 |  | 4.0
Employees: |  |  |
Expected (annual) dividend rate | $0.32 |  | $0.25
Expected volatility | 38.30% |  | 37.38%
Risk-free interest rate | 4.41% |  | 2.20%
Expected life (in years) | 3.0 |  | 3.0
1 SLT consists of officers and key members of management.
The following weighted average assumptions were used to determine the fair value of the PSUs granted on the original grant date for expense recognition purposes for PSUs granted during the nine months ended September 30, 2023 and 2022 using a Monte Carlo Model:
| Nine months ended
| September 30, 2023 |  | September 30, 2022
Expected (annual) dividend rate | $0.32 |  | $0.25
Expected volatility | 32.71% |  | 37.60%
Risk-free interest rate | 4.66% |  | 2.00%
Expected life (in years) | 2.8 |  | 2.8
Summary of Stock Options Outstanding | The following is a summary of stock options vested and exercisable as of September 30, 2023:
Range of Exercise Prices |  | Number of Shares |  | Weighted Average Remaining Contractual Life (in years) |  | Weighted Average Exercise Price |  | Intrinsic Value (in thousands)
$ | 13.95 |  | - | $ | 27.58 |  |  | 1,528,983 |  |  | 4.52 |  | $ | 24.70 |  |  | $ | 49,191 |
$ | 28.28 |  | - | $ | 37.16 |  |  | 534,293 |  |  | 6.72 |  | 30.91 |  |  | 13,870 |
$ | 37.63 |  | - | $ | 69.62 |  |  | 210,415 |  |  | 7.44 |  | 48.06 |  |  | 1,857 |
|  | Total |  | 2,273,691 |  |  | 5.31 |  | $ | 28.32 |  |  | $ | 64,918 |
Summary of Stock Option Activity | A summary of stock option activity under the plans is as follows:
Stock Options | Shares |  | Weighted Average Exercise Price
Outstanding at December 31, 2022 | 4,560,520 |  |  | $ | 30.14 |
Granted | 326,506 |  |  | 61.16 |
Exercised | (864,524) |  |  | 29.19 |
Forfeited or Expired | (106,291) |  |  | 33.90 |
Outstanding at September 30, 2023 | 3,916,211 |  |  | $ | 32.83 |
Exercisable at September 30, 2023 | 2,273,691 |  |  | $ | 28.32 |
Summary of Unvested Restricted Stock Awards | A summary of the unvested restricted stock awards is as follows:
| Shares |  | Weighted Average Grant Date Fair Value
Unvested at December 31, 2022 | 217,168 |  |  | $ | 33.34 |
Granted | 73,633 |  |  | 59.70 |
Vested | (92,977) |  |  | 32.57 |
Forfeited | (4,846) |  |  | 38.52 |
Unvested at September 30, 2023 | 192,978 |  |  | $ | 43.64 |
Schedule of Nonvested Key Employee Award Activity | A summary of the unvested Key Employee Awards is as follows:
| Shares |  | Weighted Average Grant Date Fair Value
Unvested at December 31, 2022 | 39,899 |  |  | $ | 53.45 |
Granted | — |  |  | — |
Vested | — |  |  | — |
Forfeited | — |  |  | — |
Unvested at September 30, 2023 | 39,899 |  |  | $ | 53.45 |
Schedule of Nonvested Performance-based Units Activity | A summary of the unvested PSUs is as follows:
| Shares |  | Weighted Average Grant Date Fair Value
Unvested at December 31, 2022 | 93,982 |  |  | $ | 36.62 |
Granted | 58,130 |  |  | 84.42 |
Vested | — |  |  | — |
Forfeited | — |  |  | — |
Unvested at September 30, 2023 1 | 152,112 |  |  | $ | 54.88 |
1 Consists of 22,222 PSUs cliff vesting December 31, 2023, 71,760 PSUs cliff vesting December 31, 2024, and 58,130 PSUs cliff vesting December 31, 2025.
Summary of Share-Based Compensation Expense | A summary of share-based compensation is as follows:
| Three Months Ended |  | Nine Months Ended
| September 30, 2023 |  | September 30, 2022 |  | September 30, 2023 |  | September 30, 2022
Grant date fair value of awards during the period: | (in thousands)
Options | $ | 106 |  |  | $ | 480 |  |  | $ | 5,224 |  |  | $ | 5,979 |
PSUs | — |  |  | 109 |  |  | 4,907 |  |  | 2,190 |
Restricted stock | 246 |  |  | 164 |  |  | 4,396 |  |  | 3,319 |
Total | $ | 352 |  |  | $ | 753 |  |  | $ | 14,527 |  |  | $ | 11,488 |
Share-based compensation expense: |  |  |  |  |  |  |
Options | $ | 2,228 |  |  | $ | 2,104 |  |  | $ | 6,604 |  |  | $ | 6,483 |
PSUs | 737 |  |  | 188 |  |  | 1,820 |  |  | 665 |
Restricted stock | 1,053 |  |  | 768 |  |  | 2,903 |  |  | 2,290 |
Key employee awards | 261 |  |  | 261 |  |  | 775 |  |  | 791 |
Total | $ | 4,279 |  |  | $ | 3,321 |  |  | $ | 12,102 |  |  | $ | 10,229 |
Income tax benefit related to share-based compensation:
Options | $ | 478 |  |  | $ | 531 |  |  | $ | 5,639 |  |  | $ | 1,022 |
Restricted stock | 16 |  |  | 3 |  |  | 680 |  |  | 231 |
Total | $ | 494 |  |  | $ | 534 |  |  | $ | 6,319 |  |  | $ | 1,253 |

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