SHARE-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION PLANS:

In May 2014, the shareholders approved the Company's 2014 Equity Incentive Plan (the "2014 EIP Plan") that provided for the grant of stock options, shares of restricted stock, RSUs, PSUs, stock bonus awards, stock appreciation rights, performance share awards and performance compensation awards and unrestricted stock (collectively, "Equity Incentive Awards") to the Company’s executive officers, other key employees and directors. This plan was amended in May 2017 and allows the grant of up to 1,875,000 shares of the Company’s common stock. For 2021 and 2020, the Company recognized stock-based compensation cost of $2.9 million and $2.4 million, respectively. In 2019, the Company recognized a $3.1 million reversal of previously recognized stock-based compensation costs related to PSUs that did not meet their internal performance metrics, resulting in a net benefit of $0.4 million.

Nonqualified Stock Options

A summary of changes in stock options for 2021 is as follows:


	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)

Options outstanding at December 31, 2020	188,181	$	12.85	1.3 years	$	3,933


Exercised	(188,181)	12.85
Options outstanding at December 31, 2021	—	$	—	—	$	—

There were no options granted or forfeited during 2021.

RSUs generally vest over a three year period with the fair market value of the awards determined at the grant date based on the Company's stock price. PSUs vest at the end of a three year period with the fair market value of the awards determined using a Monte Carlo simulation technique. A summary of the status of the combined RSUs and PSUs is as follows:


	Number	Weighted Average Grant Date Fair Value

Outstanding at December 31, 2020	295,840	$	24.52
Granted	106,372	33.01
Cancelled or forfeited	(73,577)	28.06
Vested	(60,104)	24.89
Outstanding at December 31, 2021	268,531	$	26.83

The assumptions used in the Monte Carlo simulations used to determine fair market value of the PSUs granted in 2021, 2020 and 2019 are set forth in the table below:


	2021		2020		2019

Volatility of common stock	40.5	%	33.9	%	29.4	%
Average volatility of peer companies	43.5	%	34.8	%	24.5	%
Average correlation coefficient of peer companies	0.8004	%	0.7561	%	0.7272	%
Risk-free interest rate	0.2	%	0.3	%	2.3	%
Expected term in years	3.00 years		2.76 years		2.69 years