Stock based compensation expense that has been charged against income was $20,315,000, $4,618,000 and $3,654,000 for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company’s 2014 Omnibus Incentive Plan (“Omnibus Incentive Plan”) provides for the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other awards that may be settled in, or based upon the value of, the Company’s common stock. The aggregate number of shares of common stock available for issuance under the Omnibus Incentive Plan is 2,450,000 shares.

A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the year ended December 31, 2021 were as follows:


Nonvested RSAs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2021	205,536	$	29.17
Granted	241,014	89.06
Vested	(78,017)	34.08
Forfeited	(5,129)	48.41
Nonvested at December 31, 2021	363,404	$	67.56

RSAs granted to employees under the Omnibus Incentive Plan generally vest over three to four years, but vesting periods may vary. The fair value of shares vested during the years ended December 31, 2021, 2020 and 2019, totaled $6,604,000, $1,988,000, and $1,466,000, respectively. Compensation expense for RSAs will be recognized on an accelerated basis over the vesting period of the awards based on the fair value of the stock at the issue date. As of December 31, 2021, there was $13,864,000 of total unrecognized compensation cost related to nonvested RSAs. The cost is expected to be recognized over a remaining weighted average period of 3.23 years.

A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2021 were as follows:


Nonvested RSUs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2021	89,713	$	33.34
Granted	32,757	103.36
Vested	—	—
Forfeited	—	—
Nonvested at December 31, 2021	122,470	$	52.07

RSUs granted to employees under the Omnibus Incentive Plan vest after five years. Compensation expense for the RSUs will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of December 31, 2021, there was $4,093,000 of unrecognized compensation cost related to the nonvested RSUs. The cost is expected to be recognized over a remaining period of 3.16 years.

A summary of changes in the Company’s nonvested Market Based Performance Stock Units (“Market Based PSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2021 were as follows:


Nonvested Market Based PSUs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2021	85,611	$	35.65
Granted	13,520	98.03
Vested	—	—
Forfeited	(4,147)	55.02
Nonvested at December 31, 2021	94,984	$	43.68

Market Based PSUs granted to employees under the Omnibus Incentive Plan vest after three to five years. The number of shares issued upon vesting will range from 0% to 175% of the shares granted based on the Company’s relative total shareholder return (“TSR”) as compared to the TSR of a specified group of peer banks. Compensation expense for the Market Based PSUs will be recognized over the vesting period of the awards based on the fair value of the award at the grant date. The fair value of Market Based PSUs granted is estimated using a Monte Carlo simulation.


	Year Ended December 31,
	2021			2020			2019
Grant date	May 1, 2021			May 1, 2020			May 1, 2019
Performance period	3.00 years			3.00 years			3.00 years
Stock price	$	88.63		$	26.25		$	30.82
Triumph stock price volatility	51.71		%	43.02		%	28.29		%
Risk-free rate	0.35		%	0.25		%	2.25		%

Expected volatilities were determined based on the historical volatilities of the Company and the specified peer group. The risk-free interest rate for the performance period was derived from the Treasury constant maturities yield curve on the valuation date.

As of December 31, 2021, there was $1,693,000 of unrecognized compensation cost related to the nonvested Market Based PSUs. The cost is expected to be recognized over a remaining period of 1.84 years.

A summary of changes in the Company’s nonvested Performance Based Performance Stock Units (“Performance Based PSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2021 were as follows:


Nonvested Performance Based PSUs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2021	256,625	$	37.56
Granted	9,000	88.63
Vested	—	—
Forfeited	(6,242)	38.02
Nonvested at December 31, 2021	259,383	$	39.32

Performance Based PSUs granted to employees under the Omnibus Incentive Plan vest after three years. The number of shares issued upon vesting will range from 0% to 200% of the shares granted based on the Company’s cumulative diluted earnings per share over the performance period. Compensation expense for the Performance Based PSUs will be estimated each period based on the fair value of the stock at the grant date and the most probable outcome of the performance condition, adjusted for the passage of time within the vesting period of the awards.

During the year ended December 31, 2021, the Company recognized $7,405,000 of stock based compensation expense related to Performance based PSUs, which represents a cumulative catch-up to cover two-thirds of the three year vesting period. As of December 31, 2021, the maximum unrecognized compensation cost related to the nonvested Performance Based PSUs was $12,991,000, and the remaining performance period over which the cost could be recognized was 1.00 year. No compensation cost was recorded during the year ended December 31, 2020.

A summary of changes in the Company’s stock options under the Omnibus Incentive Plan for the year ended December 31, 2021 were as follows:


Stock Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value (In Thousands)
Outstanding at January 1, 2021	227,986	$	25.16
Granted	16,939	88.63
Exercised	(78,170)	22.13
Forfeited	—	—
Expired	—	—
Outstanding at December 31, 2021	166,755	$	33.34	6.43	$	14,297

Fully vested shares and shares expected to vest at December 31, 2021	166,755	$	33.34	6.43	$	14,297

Shares exercisable at December 31, 2021	103,994	$	25.64	5.43	$	9,717


	Year Ended December 31,
(Dollars in thousands, except per share amounts)	2021		2020		2019
Aggregate intrinsic value of options exercised	$	5,304	$	940	$	155
Cash received from option exercises	$	577	$	—	$	—
Tax benefit realized from option exercises	$	1,114	$	197	$	33
Weighted average fair value of options granted (per share)	$	35.37	$	8.85	$	10.03
Fair value of vested awards	$	381	$	471	$	465

Stock options awarded to employees under the Omnibus Incentive Plan are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant, vest over four years, and have ten years contractual terms. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model.


	2021		2020		2019
Risk-free interest rate	1.16	%	0.46	%	2.33	%
Expected term	6.25 years		6.25 years		6.25 years
Expected stock price volatility	39.26	%	33.83	%	27.46	%
Dividend yield	—		—		—

Expected volatilities were determined based on a blend of the Company’s historical volatility and historical volatilities of a peer group of companies with a similar size, industry, stage of life cycle, and capital structure. The expected term of the options granted was determined based on the SEC simplified method, which calculates the expected term as the mid-point between the weighted average time to vesting and the contractual term. The risk-free interest rate for the expected term of the options was derived from the Treasury constant maturity yield curve on the valuation date.

As of December 31, 2021, there was $416,000 of unrecognized compensation cost related to nonvested stock options. The cost is expected to be recognized over a remaining weighted average period of 2.77 years.