EMPLOYEE STOCK COMPENSATION

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

On May 31, 2018, our stockholders approved the Company's 2018 Omnibus Stock Incentive Plan (“2018 Omnibus Plan”). The 2018 Omnibus Plan provides that the maximum number of shares available for awards is 4,417,882. As of September 30, 2021, 3,221,555 shares were available for future awards.

Stock-based Compensation Expense

The following table presents stock-based compensation expense and the related tax benefits for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands)	2021		2020		2021		2020
Stock options	$	—	$	—	$	—	$	4
Restricted stock awards and units	1,106		1,346		3,988		4,388

Total share-based compensation expense	$	1,106	$	1,346	$	3,988	$	4,392
Related tax benefits	$	326	$	396	$	1,175	$	1,293

At September 30, 2021, unrecognized compensation expense related to restricted stock awards and restricted stock units totaled $7.0 million and will be recognized over a weighted average remaining period of 2.1 years.

Restricted Stock Awards and Restricted Stock Units

We have granted restricted stock awards and restricted stock units to certain employees, officers, and directors. The restricted stock awards and units are valued at the closing price of our stock on the measurement date. The restricted stock awards and units fully vest after a specified period (generally ranging from one to five years) of continued service from the date of grant plus, in some cases, the satisfaction of performance conditions. These performance targets include conditions relating to our profitability and regulatory standing. The actual amounts of stock released upon vesting will be determined by the Compensation Committee of our Board of Directors upon the Committee's certification of the satisfaction of the target level of

performance. We recognize an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted stock, generally upon vesting or, in the case of restricted stock units, when settled.

The following table presents unvested restricted stock awards and restricted stock units activity for the three and nine months ended September 30, 2021:


	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021
	Number of Shares	Weighted Average Grant Date Fair Value Per Share		Number of Shares	Weighted Average Grant Date Fair Value Per Share
Outstanding at beginning of period	697,088	$	17.13	848,302	$	14.42
Granted (1)	14,312	$	17.47	283,642	$	19.87
Vested (2)	(11,809)	$	15.14	(367,089)	$	13.75
Forfeited (3)	(38,724)	$	17.31	(103,988)	$	14.24
Outstanding at end of period	660,867	$	17.16	660,867	$	17.16

(1)There were zero and 66,472 performance-based shares/units included in shares granted for the three and nine months ended September 30, 2021.

(2)There were zero and 77,327 performance-based shares/units included in vested shares for the three and nine months ended September 30, 2021.

(3)The number of forfeited shares includes aggregate performance-based shares/units of 8,643 and 48,803 for the three and nine months ended September 30, 2021.

Stock Options

We also issued stock options to certain employees, officers, and directors. Stock options are issued at the closing market price immediately before the grant date and generally have a three to five year vesting period and contractual terms of seven to ten years. We recognize an income tax deduction upon exercise of a stock option to the extent taxable income is recognized by the option holder. In the case of a non-qualified stock option, the option holder recognizes taxable income based on the fair market value of the shares acquired at the time of exercise less the exercise price.

The following table represents stock option activity for the three months ended September 30, 2021:


	Three Months Ended September 30, 2021
($ in thousands except per share data)	Number of Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contract Term	Aggregated Intrinsic Value
Outstanding at beginning of period	14,904	$	13.05


Exercised	—	$	—


Outstanding at end of period	14,904	$	13.05	3.5 years	$	81
Exercisable at end of period	14,904	$	13.05	3.5 years	$	81

The following table represents stock option activity for the nine months ended September 30, 2021:


	Nine Months Ended September 30, 2021
($ in thousands except per share data)	Number of Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contract Term	Aggregated Intrinsic Value
Outstanding at beginning of period	55,069	$	13.96


Exercised	(40,165)	$	14.30


Outstanding at end of period	14,904	$	13.05	3.5 years	$	81
Exercisable at end of period	14,904	$	13.05	3.5 years	$	81

There were no unvested stock options as of September 30, 2021 and December 31, 2020.

Stock Appreciation Rights

On August 21, 2012, we granted to the then, and now former, chief executive officer, ten-year stock appreciation rights (“SARs”), which were fully exercised during the first quarter of 2021 resulting in the issuance of 305,772 shares of voting common stock. In connection with the exercise of the SARs, we recognized a tax benefit of $2.1 million (refer to Note 8 - Income Taxes). There are no further outstanding SARs. The following table represents SARs activity and the weighted average exercise price per share as of and for the three and nine months ended September 30, 2021:


	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021
($ in thousands except per share data)	Number of Shares	Weighted-Average Exercise Price Per Share		Number of Shares	Weighted-Average Exercise Price Per Share
Outstanding at beginning of period	—	$	—	1,559,012	$	11.60

Exercised	—	$	—	(1,559,012)	$	11.60

Outstanding at end of period	—	$	—	—	$	—
Exercisable at end of period	—	$	—	—	$	—