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SHARE-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION
13. SHARE-BASED COMPENSATION

In accordance with ASC 718, compensation expense is recognized only for those shares expected to vest, based on the Company's historical experience and future expectations. The following table summarizes the effects of share-based compensation for options and awards granted under the Company's equity incentive plans for each of the periods presented:

 Year Ended December 31,
(Dollars in thousands)202320222021
Salaries and employee benefits$2,641 $4,567 $4,580 
Directors stock awards399 350 91 
Income tax benefit(957)(1,461)(1,449)
Net share-based compensation effect$2,083 $3,456 $3,222 
 
Upon exercise or vesting of a share-based award, if the tax deduction exceeds the compensation cost that was previously recorded for financial statement purposes, this will result in an excess tax benefit. The Company recognizes all excess tax benefits or tax deficiencies through the income statement as income tax expense/benefit. The Company recorded income tax
benefit of $0.2 million, $0.1 million, and $0.2 million in 2023, 2022, and 2021, respectively, as a result of restricted stock units vesting during the respective years.

The Company's share-based compensation arrangements are described below:

Equity Incentive Plans

The Company has adopted equity incentive plans for the purpose of granting options, restricted stock and other equity based awards for the Company's common stock to directors, officers and other key individuals. Option awards are generally granted with an exercise price equal to the market price of the Company's common stock at the date of grant; those option awards generally vest based on three or five years of continuous service and have 10-year contractual terms. Certain option and share awards provide for accelerated vesting if there is a change in control (as defined in the stock option plans below). The Company has historically issued new shares of common stock upon exercises of stock options and purchases of restricted awards.

In January 2023, the Company adopted and shareholders approved the 2023 Stock Compensation Plan ("2023 Plan") making available 1,140,000 shares for grants to employees and directors. Upon adoption of the 2023 Plan, all unissued shares from the previous plan were frozen and no new grants were granted under the previous plan. Shares may continue to be settled under the previous plan pursuant to previously outstanding awards. New shares are issued from the 2023 Plan.

A total of 1,108,639 shares were available for future grants under our 2023 Plan as of December 31, 2023, and 747,332 and 843,469 shares were previously available for future grants under our previous stock compensation plan as of December 31, 2022 and 2021, respectively.

Stock Options

There were no stock options that were granted or vested in 2023, 2022 and 2021. As of December 31, 2023, all shares have been vested and exercised.

There were no options exercised during the year ended December 31, 2023 and 2021. There were 47,440 options exercised during the year ended December 31, 2022. The aggregate intrinsic value of options exercised in 2022 under our stock compensation plans determined as of the date of exercise was $0.7 million.

As of December 31, 2023, all compensation costs related to stock options granted to employees under our stock option plans have been recognized.

Restricted and Performance Stock Units

Under the 2023 Plan, the Company awarded restricted stock units ("RSUs") and performance stock units ("PSUs") to non-officer directors and certain senior management personnel. The awards typically vest over a two, three or five year period from the date of grant and are subject to forfeiture until performance and employment targets are achieved. Compensation expense is typically measured as the market price of the stock awards on the grant date, and is recognized over the specified vesting periods.

As of December 31, 2023, there was $2.8 million of total unrecognized compensation cost related to RSUs and PSUs that is expected to be recognized over a weighted-average period of 1.8 years.
The table below presents the activity of RSUs and PSUs for each of the periods presented:

Number
of Units		Weighted
Average
Grant Date
Fair Value		Fair Value
of RSUs
and PSUs That
Vested During
The Year
(in thousands)
Unvested as of December 31, 2020532,374 $22.49 
Changes during the year:
Granted221,774 21.93 
Forfeited(75,850)21.95 
Vested(192,959)23.42 $5,077 
Unvested as of December 31, 2021485,339 21.95 
Changes during the year:
Granted99,887 28.99 
Forfeited(53,980)25.66 
Vested(178,781)21.91 4,787 
Unvested as of December 31, 2022352,465 23.40 
Changes during the year:  
Granted115,992 22.76 
Forfeited(53,041)25.09 
Vested(190,837)20.93 3,942 
Unvested as of December 31, 2023224,579 24.76