The Company’s Amended and Restated 2020 Omnibus Incentive Plan, or “the 2020 Plan,” authorizes grants of stock‑based compensation instruments including but not limited to non-qualified stock options, restricted stock awards (“RSAs”) and performance stock unit awards (“PSUs”) to certain employees and non-employee directors of the Company, to purchase or issue up to 4,520,000 shares of the Company's common stock.

Expenses related to the stock-based compensation instruments and Employee Stock Purchase Plan (“ESPP”) are included in “Compensation and employee benefits” and “Other operating expenses” on the Consolidated Statements of Income.

Below are summaries of the recognized and unrecognized stock-based compensation expense by instrument for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In thousands)
Recognized compensation expense:
Options	$	71	$	70	$	331	$	74
RSAs		1,001		603		2,509		1,776
PSUs		959		768		2,814		2,072
ESPP		123		133		499		588
Total recognized compensation expense	$	2,154	$	1,574	$	6,153	$	4,510


	September 30, 2025
	(In thousands)
Unrecognized compensation expense:
Options	$	125
RSAs		6,691
PSUs		4,151
ESPP		102
Total unrecognized compensation expense	$	11,069
Weighted average period expected to be recognized (in years)
Options		2.0
RSAs		2.2

Stock option awards provide for the option to purchase the Company's common stock. From the date of the grant, the stock options generally vest ratably over a service period of three years and are exercisable for a period up to ten years.

The Company uses the Black-Scholes option pricing model to value stock options in determining the stock-based compensation expense. Compensation expense is recognized over the three-year vesting period using the straight-line method. Forfeitures are recognized as they occur. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. The expected dividend yield is zero as the Company does not expect to pay dividends in the foreseeable future. Expected volatility is based on historical volatilities of the Company’s common stock.

The Company modified 283,790 stock options granted to employees in August 2024 into 74,746 RSAs in July 2025. The exchange ratio is based on the original grant-date fair value of the stock options. This change is deemed to be a Type I modification under ASC 718, Compensation - Stock Compensation and did not result in any additional compensation expense to be recognized by the Company.

The table below summarizes stock option activity for the nine months ended September 30, 2025 and 2024:


	Nine Months Ended September 30,
	2025			2024
	($ in thousands, except per share amounts)
Number of shares:
Options outstanding at beginning of period		1,065,772			752,964
Granted		4,740			83,359
Modified		(283,790	)		—
Options outstanding at end of period		786,722			836,323
Options exercisable at end of period		759,115			749,321
Options expected to vest (1)		27,607			87,002
Weighted average exercise price per share:
Options outstanding at beginning of period	$	14.46		$	12.88
Granted		17.50			18.23
Modified		18.23			—
Options outstanding at end of period	$	13.12		$	13.41
Options exercisable at end of period		12.94			12.88
Options expected to vest (1)		18.11			17.95
Aggregate intrinsic value (2):
Options outstanding at end of period	$	4,041		$	5,183
Options exercisable at end of period		4,025			5,039
Options expected to vest (1)		16			144
Weighted average remaining contractual life (in years):
Options outstanding at end of period		4.5			5.8
Options exercisable at end of period		4.4			5.3
Options expected to vest (1)		9.0			9.8

(1)

The number of options expected to vest reflects no expected forfeiture.

(2)

The aggregate intrinsic value represents the amount by which the fair value of underlying stock exceeds the “in-the-money” option exercise price.

The fair value of RSAs is determined based on the fair market value of the Company's common shares on the grant date. The estimated fair value of RSA awards is generally amortized as an expense over the three-year requisite service period. The Company has elected to recognize forfeitures as they occur rather than estimating service-based forfeitures over the requisite service period.

The table below summarizes RSA activity for the nine months ended September 30, 2025 and 2024:


	Nine Months Ended September 30,
	2025									2024
	Employee			Non-Employee Director			Total			Employee			Non-Employee Director			Total
Number of shares:
Unvested at beginning of period		355,505			47,430			402,935			409,137			61,276			470,413
Granted		329,495			17,292			346,787			195,164			15,939			211,103
Vested		(190,522	)		(26,261	)		(216,783	)		(248,796	)		(29,785	)		(278,581	)
Unvested at end of period		494,478			38,461			532,939			355,505			47,430			402,935

Weighted average grant date fair value per share:
Unvested at beginning of period	$	13.52		$	12.03		$	13.35		$	9.39		$	9.31		$	9.38
Granted		18.78			16.48			18.66			15.93			17.88			16.08
Vested		13.73			10.85			13.38			8.61			9.57			8.71
Unvested at end of period	$	16.95		$	14.83		$	16.79		$	13.52		$	12.03		$	13.35

In February 2022, the Company began granting PSUs to certain employees, including named executive officers under the 2020 Plan. PSUs are linked to the average core net income annual growth over the three-year period from the year of grant. Settlement of vested PSUs will be made on the date that the Compensation Committee certifies the average core net income annual growth for the three-year period. PSUs are subject to forfeiture until predetermined performance conditions have been achieved. The number of shares issued at the end of any performance period could range between 0% and 200% of the original target award amount. Compensation expense related to PSUs is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using an estimate of the probability of achieving the performance target. Adjustments to compensation expense are made each year based on changes in estimate of the number of PSUs that are probable of vesting.

The table below summarizes PSU activity for the nine months ended September 30, 2025 and 2024:


	Nine Months Ended September 30,
	2025					2024
	Number of Shares			Weighted Average Grant Date Fair Value Per Share		Number of Shares		Weighted Average Grant Date Fair Value Per Share
Outstanding at beginning of period, unvested		517,131		$	12.83		256,387	$	11.05
Granted (1)		155,165			18.82		157,994		15.86
Performance adjustment		153,637			10.00		102,750		12.63
Vested		(205,500	)		12.63		—		—
Outstanding at end of period, unvested		620,433		$	13.69		517,131	$	12.83

(1)

The number of PSUs are presented at 100% of the specified target shares.

In July 2022, the Company initiated an ESPP which allows permitted eligible employees to purchase shares of the Company's common stock through payroll deductions of up to 15% of their eligible compensation, subject to certain limitations. The purchase price of the shares under the ESPP equals 85% of the lower of the fair market value of the Company's common stock on either the first or last day of each offering period. Compensation expense for the ESPP is calculated as of the beginning of the offering period as the fair value of the employees’ purchase rights utilizing the Black-Scholes option valuation model and is recognized as a compensation expense over the offering period.

Treasury stock represents shares surrendered to the Company to satisfy tax withholding obligations in connection with the vesting or exercise of stock-based awards and shares surrendered to the Company to satisfy the warrant price in connection with warrants exercised. During the three months ended September 30, 2025, shares withheld were 9,600 at an average price of $18.74. No shares were withheld for the three months ended September 30, 2024.