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Stock and Incentive Compensation Plans | 9 Months Ended
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Sep. 30, 2025
Share-Based Payment Arrangement [Abstract] |
Stock and Incentive Compensation Plans | Note 10 — Stock and Incentive Compensation Plans The Company has granted, and currently has outstanding, stock and incentive compensation awards subject to the provisions of the Company’s 2012 Stock Incentive Plan (the “2012 Plan”), and the Company’s Omnibus Incentive Plan (“the Omnibus Plan”). The 2012 Plan and the Omnibus Plan (collectively, the “Incentive Plans”) are designed to provide flexibility to the Company regarding its ability to motivate, attract and retain the services of key officers, employees and directors. The Incentive Plans allow the Company to make grants of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards (“RSA”), restricted stock units (“RSU”), dividend equivalent rights, performance stock units (“PSU”) or any combination thereof. A maximum of 1,375,000 shares were originally reserved for issuance under the Incentive Plans. The Omnibus Plan, approved in April 2024, allows for the issuance of 675,000 shares, and no future awards may be granted under the 2012 Plan after adoption of the Omnibus Plan. At September 30, 2025, the maximum number of shares of the Company’s common stock available for grant under the Omnibus Plan was 315,324. Additionally, the Company’s stockholders previously approved an employee stock purchase plan (“ESPP”) which qualified as an ESPP under IRS guidelines. The ESPP provides for the purchase of up to an aggregate 1,000,000 shares of the Company’s common stock by employees. Under the ESPP, employees of the Company, who elect to participate, have the right to purchase a limited number of shares of the Company’s common stock at a 15% discount from the lower of the market value of the common stock at the beginning or the end of each one year offering period, beginning on June 1st. The ESPP benefit is treated as compensation to the employee, and the compensation expense will be recognized over the service period based on the grant date fair value of the rights determined at the beginning of the purchase period, adjusted for forfeitures and certain modifications. Forfeitures are recognized as they occur. At September 30, 2025, there was $337,000 of total unrecognized compensation cost related to estimated ESPP shares for the June 1, 2025 - May 31, 2026 ESPP offering period. These costs are expected to be recognized over a period of 0.7 years. The table below includes the weighted-average assumptions used to calculate the grant date fair value of the ESPP rights for the periods indicated using the Black-Scholes option pricing model:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Expected term (in years) | 1.00 |  | 1.00 |  | 1.00 |  | 1.00 |  |
Dividend yield | 1.79 | % |  | 1.98 | % |  | 1.89 | % |  | 2.03 | % |  |
Risk-free interest rate | 3.95 |  |  | 4.94 |  |  | 4.49 |  |  | 4.94 |  |  |
Expected volatility | 29.61 |  |  | 30.40 |  |  | 30.04 |  |  | 30.78 |  |  |
The ESPP shares purchased are as follows for the dates indicated:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
ESPP shares purchased | — |  |  | — |  |  | 58,568 |  |  | 56,658 |  |  |
Shares available for issuance under the ESPP | 812,472 |  |  | 871,040 |  |  | 812,472 |  |  | 871,040 |  |  |
The Compensation Committee (“Committee”) has approved, and the Company has granted PSUs to select officers and employees under the Incentive Plans. Each PSU represents a right for the participant to receive shares of Company common stock or cash equal to the fair market value of such stock, as determined by the Committee. The number of PSUs to which the participant may be entitled will vary from 0% to 150% of the target number of PSUs, based on the Company’s achievement of specified performance criteria during the performance period compared to performance benchmarks adopted by the Committee and, further, the participant’s continuous service with the Company through the third anniversary of the date of the grant. Each performance period commences on January 1 and ends three years later on December 31 (“Performance Period”). Restricted Stock and Performance Stock Grants The Company’s RSAs and RSUs are time-vested awards and are granted to the Company’s Board of Directors, executives and senior management team. The service period in which time-vested awards are earned ranges from one to seven years. Time-vested awards are valued utilizing the fair value of the Company’s stock at the grant date. These awards are recognized on the straight-line method over the requisite service period, with forfeitures recognized as they occur. The Company’s PSU awards, excluding the CEO PSUs, are three-year cliff-vested awards, with each unit divided into two categories (“ROAA Unit Group” and “ROAE Unit Group”), composed of an equivalent number of initial PSUs granted. The PSU share amounts do not reflect potential increases or decreases resulting from the interim performance results until the final performance results are determined at the end of the three-year period. The ROAA Unit Group is based upon the Company’s Performance Period Return on Average Assets performance, as defined in the award agreement, and the ROAE Unit Group is based upon the Company’s Performance Period Return on Average Equity performance, as defined in the award agreement. The PSUs are initially valued utilizing the fair value of the Company’s stock at the grant date, assuming 100% of the target number of units are achieved. Subsequent valuation of the PSUs is determined using the ratio of the actual Company’s Performance Period ROAA or ROAE to the Company’s targeted Performance Period ROAA or ROAE. The determination of whether and to what extent the performance criteria has been satisfied during the applicable Performance Period shall be made by the Compensation Committee, in its sole and absolute discretion, including disregarding certain nonrecurring, unusual or infrequent items in the ROAA or ROAE calculation as described further in the PSU award agreement. Forfeitures are recognized as they occur. The following table summarizes the Company’s award activity:
| Nine Months Ended September 30, |  |  |  |
| 2025 |  | 2024 |  |
| Shares |  | Weighted Average Grant-Date Fair Value |  | Shares |  | Weighted Average Grant-Date Fair Value |  |  |  |
Nonvested RSAs, January 1, | 20,415 |  |  | $ | 33.06 |  |  | 17,629 |  |  | $ | 29.33 |  |  |  |  |
Granted RSAs | 14,760 |  |  | 33.89 |  |  | 19,682 |  |  | 33.03 |  |  |  |  |
Vested RSAs | (20,415) |  |  | 33.06 |  |  | (17,629) |  |  | 29.33 |  |  |  |  |
Forfeited RSAs | (1,476) |  |  | 33.89 |  |  | — |  |  | — |  |  |  |  |
Nonvested RSAs, September 30, | 13,284 |  |  | 33.89 |  |  | 19,682 |  |  | 33.03 |  |  |  |  |
Nonvested RSUs, January 1, | 352,002 |  |  | $ | 35.45 |  |  | 318,168 |  |  | $ | 37.69 |  |  |  |  |
Granted RSUs | 120,080 |  |  | 37.34 |  |  | 117,597 |  |  | 31.98 |  |  |  |  |
Vested RSUs | (95,624) |  |  | 35.76 |  |  | (80,948) |  |  | 38.89 |  |  |  |  |
Forfeited RSUs | (6,865) |  |  | 33.28 |  |  | (785) |  |  | 42.55 |  |  |  |  |
Nonvested RSUs, September 30, | 369,593 |  |  | 36.03 |  |  | 354,032 |  |  | 35.51 |  |  |  |  |
Nonvested PSUs, January 1, | 265,197 |  |  | $ | 32.07 |  |  | 197,842 |  |  | $ | 28.33 |  |  |  |  |
Granted PSUs | 55,650 |  |  | 39.50 |  |  | 67,355 |  |  | 33.03 |  |  |  |  |
Vested PSUs | (17,191) |  |  | 44.77 |  |  | — |  |  | — |  |  |  |  |
Incremental forfeited PSUs(1) | (9,738) |  |  | 44.77 |  |  | — |  |  | — |  |  |  |  |
Nonvested PSUs, September 30, | 293,918 |  |  | 32.31 |  |  | 265,197 |  |  | 32.07 |  |  |  |  |
____________________________ (1)Represents forfeited incremental PSU shares due to the measurement of performance metrics. At September 30, 2025, there was $273,000, $10.6 million and $4.7 million of total unrecognized compensation cost related to nonvested RSA shares, RSU shares and PSU shares under the Incentive Plans, respectively. Those costs are expected to be recognized over a weighted-average period of 0.6, 2.8 and 0.9 years for RSA, RSU and PSU shares, respectively. Share-based compensation cost charged to income for the three and nine months ended September 30, 2025, and 2024, is presented below. There was no stock option expense for any of the periods shown.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
RSA & RSU | $ | 1,234 |  |  | $ | 1,260 |  |  | $ | 3,583 |  |  | $ | 3,475 |  |  |
PSU | 907 |  |  | 782 |  |  | 2,196 |  |  | 2,109 |  |  |
ESPP | 127 |  |  | 144 |  |  | 371 |  |  | 369 |  |  |
Total stock compensation expense | $ | 2,268 |  |  | $ | 2,186 |  |  | $ | 6,150 |  |  | $ | 5,953 |  |  |
Related tax benefits recognized in net income | $ | 476 |  |  | $ | 459 |  |  | $ | 1,292 |  |  | $ | 1,250 |  |  |
Stock Option Grants The Company had previously issued common stock options to select officers and employees primarily through individual agreements. All of the options are fully vested, and as of September 30, 2025, fully exercised, and there are no options outstanding, excluding the options assumed in conjunction with the BTH merger as described further below. In conjunction with the BTH merger, the Company assumed the BTH 2012 Equity Incentive Plan and converted all outstanding options to purchase BTH common stock into options to purchase an aggregate of 611,676 shares of the Company’s common stock. Under the terms of applicable change in control provisions within the BTH 2012 Equity Incentive Plan and BTH Notice Of Stock Option Award, all BTH stock options fully vested immediately prior to the closing of the merger that occurred on August 1, 2022. As of September 30, 2025, BTH converted options have no expiration dates past February 16, 2031, and no further grants will be made under the BTH 2012 Equity Incentive Plan. The table below summarizes the Company’s option activity:
(Dollars in thousands, except per share amounts) | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
Nine Months Ended September 30, 2025 |  |  |  |  |  |  |
Outstanding at January 1, 2025 | 225,834 |  |  | $ | 32.24 |  |  | 3.72 |  | $ | 614 |
Exercised | (22,670) |  |  | 29.36 |  |  | — |  |  | 178 |
Expired and forfeited | (1,820) |  |  | 37.28 |  |  | — |  |  | — |
Outstanding and exercisable at September 30, 2025 | 201,344 |  |  | 32.52 |  |  | 2.99 |  | 635 |
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |
Outstanding at January 1, 2024 | 353,473 |  |  | $ | 31.49 |  |  | 4.46 |  | $ | 1,670 |
Exercised | (46,009) |  |  | 27.80 |  |  | — |  |  | 282 |
Expired and forfeited | (45,680) |  |  | 35.52 |  |  | — |  |  | — |
Outstanding and exercisable at September 30, 2024 | 261,784 |  |  | 31.43 |  |  | 3.72 |  | 758 |

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