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STOCK BASED COMPENSATION
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK BASED COMPENSATION STOCK BASED COMPENSATION   
The Company's stock based plans include the Second Amended and Restated 2005 Employee Stock Plan (the "2005 Plan") and the 2018 Non-Employee Director Stock Plan (the "2018 Plan"), which have been approved by the Company’s Board of Directors and shareholders. These shares may be awarded as either stock option awards or restricted stock awards from its pool of authorized but unissued shares.

The following table presents the amount of cumulatively granted stock option awards and restricted stock awards, net of forfeitures and expirations, granted through December 31, 2022:
 Authorized Awards Cumulatively Granted, Net of
Forfeitures and Expirations		TotalAuthorized
but
Unissued
Stock
Option  Awards		Restricted
Stock  Awards
2005 Plan1,650,000 387,258 986,882 1,374,140 275,860 
2018 Plan300,000 — 38,357 38,357 261,643 

The following table presents the pre-tax expense associated with stock option and restricted stock awards and the related tax benefits recognized for the periods presented:
 Years Ended December 31
 202220212020
 (Dollars in thousands)
Stock based compensation expense
Restricted stock awards (1)$3,791 $3,580 $3,272 
Directors’ fee expense (2)
Restricted stock awards673 729 851 
Total stock based award expense$4,464 $4,309 $4,123 
Related tax benefits recognized in earnings$1,255 $1,212 $1,159 
(1)Inclusive of compensation expense associated with time-vested and performance-based restricted stock awards.
(2)Expense related to awards issued to directors is recognized as directors’ fees within other noninterest expense.

The Company has standard form agreements used for stock option and restricted stock awards. The standard form agreements used for the Chief Executive Officer and all other Executive Officers have previously been disclosed in Securities and Exchange Commission filings and generally provide that: (1) any unvested options or unvested restricted stock vest upon a Change of Control; and, that (2) any stock options which vest pursuant to a Change of Control, which is an event described in Section 280G of the Internal Revenue Code of 1986, will be cashed out at the difference between the acquisition price and the exercise price of the stock option.

Stock Options

The fair value of each stock option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions used for grants under the identified plans:
•Expected volatility is based on the standard deviation of the historical volatility of the weekly adjusted closing price of the Company’s shares for a period equivalent to the expected life of the option.
•Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, historical exercise/forfeiture behavior, and the vesting period, if any.
•Expected dividend yield is an annualized rate calculated using the most recent dividend payment at time of grant and the Company’s average trailing twelve-month daily closing stock price.
•The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option.
•Forfeitures on stock compensation are recognized when they occur.
For the years ended December 31, 2022, 2021 and 2020 there were no awards granted by the Company of nonqualified options to purchase shares of common stock.
 
Under all of the Company’s stock based plans, the option exercise price is based upon the average of the high and low trading value of the stock on the date of grant. Stock option awards granted to date under all plans expire at various dates through 2028.

The following table presents relevant information relating to the Company’s stock options for the periods presented:
 Years Ended December 31
 202220212020
 (Dollars in thousands, except per share data)
Fair value of stock options vested based on grant date fair value$— $— $22 
Intrinsic value of stock options exercised$— $414 $404 
Cash received from stock option exercises$— $233 $279 
Tax benefit realized on stock option exercises$— $116 $114 

The following table presents a summary of stock option award activity for the year ended December 31, 2022:
 Outstanding
 Stock Option
Awards		 Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term (years)		Aggregate
Intrinsic
Value (1)
 (Dollars in thousands, except per share data)
Balance at January 1, 202220,000   $56.18 
Granted—   — 
Exercised— — 
Balance of options outstanding, vested and exercisable at December 31, 202220,000 (2)$56.18 3.35 years$568 
(1)The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the average of the high price and low price at which the Company’s common stock traded on December 31, 2022 of $84.57, which would have been received by in-the-money option holders had they all exercised their options as of that date.
(2)Represents vested stock options outstanding to Directors.

For the year ended December 31, 2022, all outstanding stock option awards are vested and there is no unrecognized compensation expense related to those options.

Restricted Stock

The Company grants both time-vested restricted stock awards as well as performance-based restricted stock awards. The fair value of the restricted stock awards are based upon the average of the high and low prices at which the Company’s common stock traded on the date of grant. The holders of time-vested restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of performance-based restricted stock awards do not participate in the rewards of stock ownership of the Company until vested. The holders of all restricted stock awards are not required to pay any consideration to the Company for the awards.
During the years ended December 31, 2022, 2021, and 2020 the Company made the following restricted stock award grants:
Shares GrantedPlanFair Value Vesting Period
Time-vested
2022
2/17/202252,100 2005 $84.70 Ratably over 5 years from grant date
5/24/20228,099 2018$80.39 Immediately upon grant date
9/15/2022646 2005$77.44 Ratably over 5 years from grant date
2021
2/18/202149,550 2005$81.84 Ratably over 5 years from grant date
5/25/20217,680 2018$78.18 Immediately upon grant date
9/1/2021640 2018$76.78 Immediately upon grant date
2020
2/27/202046,550 2005$70.24 Ratably over 5 years from grant date
4/15/2020880 2005$70.02 Ratably over 5 years from grant date
5/27/20209,438 2018$72.86 Immediately upon grant date
Performance-based
2/17/202220,700 2005$84.70 
The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2025.
2/18/202118,900 2005$81.84 
The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2024.
2/27/202017,100 2005$70.24 
The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2023.

The following table presents the fair value of restricted stock awards that vested during the periods presented:
 Years Ended December 31
 202220212020
 (Dollars in thousands)
Fair value of restricted stock awards upon vesting$5,148 $5,754 $5,580 
The following table presents a summary of restricted stock award activity for the year ended December 31, 2022:
 Outstanding Restricted Stock
Awards		 Weighted Average
Grant Price ($)		 
  
Balance at January 1, 2022185,173   $77.03 
Granted81,545   84.21 
Vested/released(61,396)75.73 
Forfeited (2)(13,910)  81.96 
Balance at December 31, 2022191,412 (1)$80.15 
Unrecognized compensation cost (in thousands) (1)$8,916 
Weighted average remaining recognition period (years)3.09 years
(1)There are no unvested restricted stock awards outstanding to Directors and therefore no related unrecognized compensation cost for Directors.