XML 43 R29.htm IDEA: XBRL DOCUMENT
v3.20.4

Share-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Share-Based Compensation | SHARE-BASED COMPENSATION Stock options and RSAs have been issued to directors, officers and other management employees under the Corporation's 2009 Long-term Equity Incentive Plan, the 2019 Long-term Equity Incentive Plan and the Equity Compensation Plan for Non-Employee Directors. The stock options, which have a ten-year life, become 100 percent vested based on time ranging from one year to two years and are fully exercisable when vested. Option exercise prices equal the Corporation's common stock closing price on NASDAQ on the date of grant. The RSAs issued to employees and non-employee directors provide for the issuance of shares of the Corporation's common stock at no cost to the holder and generally vest after three years. The RSAs vest only if the employee is actively employed by the Corporation on the vesting date and, therefore, any unvested shares are forfeited. For non-employee directors, the RSA's vest only if the non-employee director remains as an active board member on the vesting date and, therefore, any unvested shares are forfeited. The RSAs for employees and non-employee directors retired from the Corporation are either immediately vested at retirement, disability or death, or continue to vest after retirement, disability or death, depending on the plan under which the shares were granted. The Corporation’s 2009 ESPP and 2019 ESPP provides eligible employees of the Corporation and its subsidiaries an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000. The Corporation's 2009 ESPP expired on June 30, 2019. Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation for the years ended December 31, 2020, 2019, and 2018 was $4,600,000, $4,115,000, and $3,592,000, respectively, and has been recognized as a component of salaries and benefits expense in the accompanying CONSOLIDATED STATEMENTS OF INCOME. Share-based compensation expense recognized in the CONSOLIDATED STATEMENTS OF INCOME is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 0.4 percent for the year ended December 31, 2020, based on historical experience. The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. In 2020, the Corporation had RSAs vest primarily at a stock price that was lower than the grant date stock price, which resulted in the recognition of income tax expense at vesting of $394,000. For the years ended 2019 and 2018, RSAs vested at a stock price higher than the grant date stock price resulting in recognition of income tax benefit at vesting of $363,000 and $448,000, respectively.
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Stock and ESPP Options |  |  |  |  |
Pre-tax compensation expense | $ | 96 |  |  | $ | 101 |  |  | $ | 109 |
Income tax benefit | (29) |  |  | (70) |  |  | (97) |
Stock and ESPP option expense, net of income taxes | $ | 67 |  |  | $ | 31 |  |  | $ | 12 |
Restricted Stock Awards |  |  |  |  |
Pre-tax compensation expense | $ | 4,504 |  |  | $ | 4,014 |  |  | $ | 3,483 |
Income tax benefit | (552) |  |  | (1,206) |  |  | (1,179) |
Restricted stock awards expense, net of income taxes | $ | 3,952 |  |  | $ | 2,808 |  |  | $ | 2,304 |
Total Share-Based Compensation: |  |  |  |  |
Pre-tax compensation expense | $ | 4,600 |  |  | $ | 4,115 |  |  | $ | 3,592 |
Income tax benefit | (581) |  |  | (1,276) |  |  | (1,276) |
Total share-based compensation expense, net of income taxes | $ | 4,019 |  |  | $ | 2,839 |  |  | $ | 2,316 |
As of December 31, 2020, unrecognized compensation expense related to RSAs was $6,721,000 and is expected to be recognized over weighted-average period of 1.73 years. The Corporation did not have any unrecognized compensation expense related to stock options as of December 31, 2020. Stock option activity under the Corporation's stock option plans, as of December 31, 2020, and changes during the year ended December 31, 2020, were as follows:
| Number of Shares |  | Weighted-Average Exercise Price |  | Weighted Average Remaining Contractual Term (in Years) |  | Aggregate Intrinsic Value
Outstanding at January 1, 2020 | 59,350 |  |  | $ | 13.51 |  |  | — |  |  | $ | — |
Exercised | (13,550) |  |  | $ | 8.48 |  |  | — |  |  | $ | — |
Outstanding December 31, 2020 | 45,800 |  |  | $ | 15.00 |  |  | 1.94 |  | $ | 1,026,578 |
Vested and Expected to Vest at December 31, 2020 | 45,800 |  |  | $ | 15.00 |  |  | 1.94 |  | $ | 1,026,578 |
Exercisable at December 31, 2020 | 45,800 |  |  | $ | 15.00 |  |  | 1.94 |  | $ | 1,026,578 |
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Corporation's closing stock price on the last trading day of 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their stock options on December 31, 2020. The amount of aggregate intrinsic value will change based on the fair market value of the Corporation's common stock. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2020 and 2019 was $261,000 and $495,000, respectively. Cash receipts of stock options exercised during 2020 and 2019 were $115,000 and $144,000, respectively. The following table summarizes information on unvested RSAs outstanding as of December 31, 2020:
| Number of Shares |  | Weighted-Average Grant Date Fair Value
Unvested RSAs at January 1, 2020 | 351,048 |  |  | $ | 40.67 |
Granted | 140,577 |  |  | $ | 27.25 |
Forfeited | (5,450) |  |  | $ | 37.81 |
Vested | (128,292) |  |  | $ | 39.67 |
Unvested RSAs at December 31, 2020 | 357,883 |  |  | $ | 36.30 |
The grant date fair value of ESPP options was estimated at the beginning of the October 1, 2020, quarterly offering period of approximately $19,000. The ESPP options vested during the three months ending December 31, 2020, leaving no unrecognized compensation expense related to unvested ESPP options at December 31, 2020.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration