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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company has equity awards outstanding under two stock-based compensation plans; The 2023 Equity and Incentive Plan (the “2023 Plan”) and the 2015 Equity Incentive Plan, as amended and restated (the “2015 Plan”). These plans were primarily established to enhance the Company’s ability to attract, retain, and motivate employees. The Company’s Board of Directors or, upon delegation, the Compensation and Human Capital Committee of the Board of Directors (“Compensation Human Capital Committee”) has exclusive authority to select employees, advisors and others, including directors, to receive awards and to establish the terms and conditions of each award made pursuant to the Company’s stock-based compensation plan. The 2023 Plan, approved by the Company’s shareholders in May 2023, was established to provide the Company with flexibility to select from various equity-based performance compensation methods, and to be able to address changing accounting and tax rules and corporate governance practices by optimally utilizing performance based compensation. The 2023 Plan did not increase the number of shares of the common stock available for awards under the 2015 Plan. At December 31, 2023, there were 1,389,724 common shares available for future grant under the 2023 Plan. The 2015 Plan, approved by the Company’s shareholders in May 2015, was established to provide the Company with flexibility to select from various equity-based performance compensation methods, and to be able to address changing accounting and tax rules and corporate governance practices by optimally utilizing performance based compensation. Upon approval of the 2023 Plan, the remaining common shares available for future grant under the 2015 were forfeited. The 2015 Plan continues with respect to the awards made prior to June 2023. Restricted Stock Awards. Common stock issued under the Company’s restricted stock plan may not be sold or otherwise transferred until restrictions have lapsed or performance objectives have been obtained. During the vesting periods, participants have voting rights and receive dividends on all time restricted shares and vesting performance restricted shares under the 2015 Plan. During the vesting periods, under the 2023 Plan, participants do not have voting rights and dividends are accumulated until the time upon which the award vests. Upon termination of employment, common shares upon which restrictions have not lapsed must be returned to the Company. All restricted share awards are classified as equity awards. The fair value of equity-classified restricted stock awards is based on the market price of the stock on the measurement date and is amortized as compensation expense on a straight-line basis over the period restrictions lapse or performance goals are met. Stock compensation is recognized based on the number of awards to vest using actual forfeiture amounts. For performance-based stock awards, an estimate is made of the number of shares expected to vest as a result of actual performance against the performance targets to determine the amount of compensation expense to be recognized. The estimate is reevaluated quarterly and total compensation expense is adjusted for any change in the current period. Stock-based compensation expense related to restricted stock awards of $4.7 million, $9.6 million and $8.9 million was included in employee benefits on the Company’s consolidated statements of income for the years ended December 31, 2023, 2022, and 2021, respectively. Related income tax expense of $0.4 million and $0.3 million for the years ended December 31, 2023 and 2022, respectively, and related income tax benefit of $0.3 million was recognized for the year ended December 31, 2021. The following table presents information regarding the Company’s restricted stock:
As of December 31, 2023 | Number of Shares |  | Weighted-Average Measurement Date Fair Value
Restricted stock, beginning of year | 741,098 |  |  | $ | 38.94 |
Granted | 683,574 |  |  | 19.84 |
Vested | (180,587) |  |  | 36.73 |
Forfeited | (127,779) |  |  | 29.75 |
Restricted stock, end of year | 1,116,306 |  |  | $ | 27.74 |
During 2023, the Company issued 683,574 restricted common shares. The 2023 restricted share awards included 363,440 performance restricted shares, of which 181,720 vest in varying percentages upon achievement of defined return on average equity performance goals, and 181,720 vest in varying percentages upon achievement of defined total return to shareholder goals. The defined return to shareholder goals related to the 2020 performance restricted stock grants were not met resulting in the cancellation of 86,802 performance shares. Vesting of the 2023 performance restricted shares is also contingent on employment as of March 15, 2026. Additionally, 406,936 time-restricted shares were issued during 2023, of which 54,414 vest one year from the grant date, 97,665 vest two years from the grant date, and the remaining 254,857 vest one-third on each annual anniversary of the grant date, contingent on continued employment through the vesting dates. As of December 31, 2023, there was $22.2 million of unrecognized compensation cost related to non-vested, restricted stock awards expected to be recognized over a period of 1.35 years.

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