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Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2024
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Non-Qualified Employee Stock Award Plan At June 30, 2024, there were 938,814 authorized shares remaining available for future issuance pursuant to the United Fire Group, Inc. 2021 Stock and Incentive Plan (as amended, the "Stock Plan"). The Stock Plan is administered by the Board of Directors, which determines those employees who will receive awards, when awards will be granted, and the terms and conditions of the awards. The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Stock Plan. Pursuant to the Stock Plan, the Board of Directors may, at its sole discretion, grant awards to our employees, who are in positions of substantial responsibility with UFG. The Board of Directors, in its discretion, has also delegated authority to management to grant a limited number of restricted stock units in situations where the Company is seeking to recruit or retain individuals. Options granted pursuant to the Stock Plan are granted to buy shares of UFG's common stock at the market value of the stock on the date of grant. Options granted prior to March 2017 vest and are exercisable in installments of 20.0 percent of the number of shares covered by the option award each year from the grant date, unless the Board of Directors authorizes the acceleration of vesting. Options granted after March 2017 vest and are exercisable in installments of 33.3 percent of the number of shares covered by the option award each year from the grant date, unless the Board of Directors authorizes the acceleration of vesting. To the extent not exercised, vested option awards accumulate and are exercisable by the awardee, in whole or in part, in any subsequent year included in the option period, but not later than 10 years from the grant date. Restricted and unrestricted stock awards granted pursuant to the Stock Plan are granted at the market value of UFG's common stock on the date of the grant. Restricted stock units fully vest after three years or five years from the date of grant, unless accelerated upon the approval of the Board of Directors, at which time UFG common stock will be issued to the awardee. The activity in the Stock Plan is displayed in the following table:
Authorized Shares Available for Future Award Grants | Six Months Ended June 30, 2024 |  | From Inception to June 30, 2024
Beginning balance | 1,150,834 |  |  | 1,900,000 |
Additional shares authorized | — |  |  | 2,150,000 |
Number of awards granted | (374,839) |  |  | (4,348,696) |
Number of awards forfeited or expired | 162,819 |  |  | 1,237,510 |
Ending balance | 938,814 |  |  | 938,814 |
Number of option awards exercised | — |  |  | 1,537,336 |
Number of unrestricted stock awards granted | — |  |  | 10,090 |
Number of restricted stock awards vested | 34,881 |  |  | 335,317 |
Non-Qualified Non-Employee Director Stock Plan The United Fire Group, Inc. Non-Employee Director Stock Plan (formerly known as the 2005 Non-Qualified Non- Employee Director Stock Option and Restricted Stock Plan) (the "Director Stock Plan") authorizes the issuance of restricted stock awards and non-qualified stock options to purchase shares of UFG's common stock to non-employee directors. At June 30, 2024, the Company had 71,410 authorized shares available for future issuance pursuant to the Director Stock Plan. The Board of Directors has the authority to determine which non-employee directors receive awards, when restricted stock, restricted stock units and options shall be granted, the option price, the option expiration date, the date of grant, the vesting schedule of options or whether the options shall be immediately vested, the terms and conditions of options, restricted stock and restricted stock units (other than those terms and conditions set forth in the plan) and the number of shares of common stock to be issued pursuant to an option, restricted stock or restricted stock unit agreements (subject to limits set forth in the Director Stock Plan). The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Director Stock Plan. The activity in the Director Stock Plan is displayed in the following table:
Authorized Shares Available for Future Award Grants | Six Months Ended June 30, 2024 |  | From Inception to June 30, 2024
Beginning balance | 103,600 |  |  | 300,000 |
Additional authorization | — |  |  | 150,000 |
Number of awards granted | (32,190) |  |  | (418,808) |
Number of awards forfeited or expired | — |  |  | 40,218 |
Ending balance | 71,410 |  |  | 71,410 |
Number of option awards exercised | — |  |  | 152,336 |
Number of restricted stock awards vested | 31,380 |  |  | 169,336 |
Stock-Based Compensation Expense For the three-month periods ended June 30, 2024 and 2023, we recognized stock-based compensation expense of $1,555 and $1,100, respectively. As of June 30, 2024, we had $11,158 in stock-based compensation expense that has yet to be recognized through our results of operations. We expect this compensation to be recognized over the remainder of 2024 and subsequent years according to the table below, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated.
2024 |  | $ | 3,155 |
2025 |  | 4,707 |
2026 |  | 2,746 |
2027 |  | 550 |
2028 |  | — |
Total |  | $ | 11,158 |

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