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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2022
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation In 2019, the Company’s stockholders approved the 2019 stock-based incentive plan (the “2019 Plan”), which provides for grants of stock options, stock appreciation rights (“SAR”), restricted stock, performance shares, and performance units to non-employee directors, employees, and potentially consultants of the Company. Stock options may be either incentive stock options (“ISOs”), as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or nonqualified stock options (“NQSOs”). The 2019 Plan provides the Company flexibility to (i) attract and retain qualified non-employee directors, executives, other key employees, and potentially consultants with appropriate equity-based awards to; (ii) motivate high levels of performance; (iii) recognize employee and potentially consultants’ contributions to the Company’s success; and (iv) align the interests of the participants with those of the Company’s stockholders. The 2019 Plan initially had 4,400,000 shares that were available for grant to participants. The exercise price for shares under an ISO may not be less than 100% of fair market value on the date the award is granted under the Code. Similarly, under the terms of the 2019 Plan, the exercise price for SARs and NQSOs may not be less than 100% of fair market value on the date of grant. Performance units are awarded to participants at the market price of the Company’s common stock on the date of award (after the lapse of the restriction period and the attainment of the performance criteria). All options not exercised generally expire 10 years after the date of grant. ISOs, SARs, and NQSOs have vesting periods of three to five years and have 10-year contractual terms. Restricted stock, performance shares, and performance units are granted with a restriction period of not less than one year from the grant date for performance-based awards and not more than three years from the grant date for time-based vesting of grants. Compensation expense for awards is recognized over the vesting period. Under the 2019 Plan, 1,463,349 shares were available for future grants as of September 30, 2022. With the exception of the shares underlying stock options and restricted stock awards, the Board of Directors may choose to settle the awards by paying the equivalent cash value or by delivering the appropriate number of shares. The following is a summary of the Company’s stock option activity for the nine months ended September 30, 2022:
| Number of Shares |  | Weighted-Average Exercise Price Per Share |  | Weighted-Average Remaining Contractual Life (Years) |  | Aggregate Intrinsic Value
|  |  |  |  |  |  | (Dollars in thousands)
Outstanding - January 1, 2022 | 814,877 |  |  | $ | 15.17 |  |  |  |  |
Granted | — |  |  | — |  |  |  |  |
Exercised | (105,510) |  |  | 5.02 |  |  |  |  |
Expired | (20,000) |  |  | 17.18 |  |  |  |  |
Forfeited | — |  |  | — |  |  |  |  |
Outstanding - September 30, 2022 | 689,367 |  |  | $ | 16.66 |  |  | 3.22 |  | $ | — |
Options exercisable - September 30, 2022 | 689,367 |  |  | $ | 16.66 |  |  | 3.22 |  | $ | — |
The following is a summary of the Company’s restricted stock and performance unit activity for the nine months ended September 30, 2022:
| Number of Shares |  | Weighted-Average Grant Date Fair Value
Outstanding (unvested) - January 1, 2022 | 1,561,197 |  |  | $ | 12.08 |
Granted | 981,558 |  |  | 15.93 |
Vested | (616,521) |  |  | 12.66 |
Forfeited | (168,217) |  |  | 13.50 |
Outstanding (unvested) - September 30, 2022 | 1,758,017 |  |  | $ | 13.89 |
The total fair value of restricted stock and performance units vested as of September 30, 2022 and 2021 was $9.5 million and $9.4 million, respectively. The Company maintains the Hope Employee Stock Purchase Plan (“ESPP”), which allows eligible employees to purchase the Company’s common shares through payroll deductions which build up between the offering date and the purchase date. At the purchase date, the Company uses the accumulated funds to purchase shares of the Company’s common stock on behalf of the participating employees at a 10% discount to the closing price of the Company’s common shares. The closing price is the lower of either the closing price on the first day of the offering period or the closing price on the purchase date. The dollar amount of common shares purchased under the ESPP must not exceed 20% of the participating employee’s base salary, subject to a cap of $25 thousand in stock value based on the grant date. The ESPP is considered compensatory under GAAP and compensation expense for the ESPP is recognized as part of the Company’s stock-based compensation expense. The compensation expense for the ESPP during the three and nine months ended September 30, 2022 was $50 thousand and $284 thousand, respectively. The compensation expense for the ESPP during the three and nine months ended September 30, 2021 was $219 thousand and $296 thousand, respectively. The Company discontinued the ESPP program in July 2022. The total amounts charged against income related to stock-based payment arrangements, including the ESPP, were $3.2 million and $9.3 million for the three and nine months ended September 30, 2022, respectively. For the three and nine months ended September 30, 2021, $2.2 million and $6.8 million, respectively, of stock-based payment arrangements were charged against income. The income tax benefit recognized was approximately $865 thousand and $2.4 million for the three and nine months ended September 30, 2022, respectively. The income tax benefit recognized for the three and nine months ended September 30, 2021, was approximately $579 thousand and $1.7 million, respectively. At September 30, 2022, there was no unrecognized compensation expense related to non-vested stock option grants. Unrecognized compensation expense related to non-vested restricted stock and performance units was $16.5 million and is expected to be recognized over a weighted average vesting period of 1.90 years.

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