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STOCK-BASED COMPENSATION PLANS | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS The Company's equity incentive plan was approved and amended by stockholders on April 27, 2005 and May 20, 2014. The Company is authorized to issue awards up to 2,000,000 shares of common stock. During 2023, the Company granted RSAs of common stock to Officers and to the Board of Directors (Board). An RSA share represents the right to receive a share of the Company's common stock and is valued based on the fair market value of the Company's common stock at the date of grant. RSAs granted to Officers vest over 36 months with the first year cliff vesting. In general, RSAs granted to Board vest at the end of 12 months. The RSAs are recognized as expense evenly over 36 months for the shares granted to Officers and 12 months for the shares granted to Board. As of December 31, 2023, there was approximately $1.8 million of total unrecognized compensation cost related to RSAs. The cost is expected to be recognized over a weighted average period of 1.6 years. A summary of the status of the outstanding RSAs as of December 31, 2023 is presented below:
| Number of RSA Shares |  | Weighted-Average Grant-Date Fair Value
RSAs at January 1, 2023 | 52,066 |  |  | $ | 55.77 |
Granted | 44,215 |  |  | $ | 55.33 |
Vested | (40,953) |  |  | $ | 55.71 |
Forfeited | (2,025) |  |  | 55.59 |
RSAs at December 31, 2023 | 53,303 |  |  | $ | 55.48 |
During 2023, the Company granted performance-based RSUs of common stock to Officers. Each award reflects a target number shares of common stock that may be issued to the award recipient. The Company may settle RSUs in shares of the Company's common stock, cash or a combination of both. The 2023 awards may be earned upon the completion of a 3-year performance period. Whether RSUs are earned at the end of the performance period will be determined based on the achievement of certain performance objectives set by the Organization and Compensation Committee of the Board in connection with the issuance of the RSUs. The performance objectives are based on the Company's business plan covering the performance period. The performance objectives include achieving the budgeted return on equity, growth in stockholders' equity, and environmental, social, and governance targets. Depending on the results achieved during the 3-year performance period, the actual number of shares that a grant recipient receives at the end of the performance period may range from 0% to 200% of the target shares granted, provided that the grantee is continuously employed by the Company through the vesting date. If prior to the vesting date employment is terminated by reason of death, disability or normal retirement, then a pro rata portion of this award will vest, which has typically been settled in cash. The RSUs are recognized as expense ratably over the 3-year performance period using a fair market value of the Company's common share at the date of grant and an estimated number of RSUs earned during the performance period. As of December 31, 2023, there was approximately $2.4 million of total unrecognized compensation cost related to RSUs. The cost is expected to be recognized over a weighted average period of 1.4 years. A summary of the status of the outstanding RSUs as of December 31, 2023 is presented below:
| Number of RSU Shares |  | Weighted-Average Grant-Date Fair Value
RSUs at January 1, 2023 | 92,625 |  |  | $ | 54.06 |
Granted | 43,633 |  |  | $ | 55.48 |
Performance share award adjustment | 14,822 |  |  | $ | 56.84 |
Vested | (40,589) |  |  | $ | 56.84 |
Forfeited | (17,413) |  |  | $ | 54.43 |
RSUs at December 31, 2023 | 93,078 |  |  | $ | 55.41 |
The Company has recorded compensation costs for the RSAs and RSUs which are included in administrative and general operating expenses in the amount of $2.7 million for 2023 and $4.9 million for 2022.

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