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 June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(In thousands)
Recognized compensation expense:
Options	$	16	$	131	$	32	$	260
RSAs		1,324		761		2,433		1,508
PSUs		1,458		948		2,750		1,855
ESPP		281		189		559		376
Total recognized compensation expense	$	3,079	$	2,029	$	5,774	$	3,999

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 table below summarizes stock option activity for the six months ended June 30, 2026 and 2025:


	Six Months Ended June 30,
	2026			2025
	($ in thousands, except per share amounts)
Number of shares:
Options outstanding at beginning of period		786,722			1,065,772
Exercised		(20,000	)		—
Options outstanding at end of period		766,722			1,065,772
Options exercisable at end of period		760,838			749,344
Options expected to vest (1)		25,884			316,428
Weighted average exercise price per share:
Options outstanding at beginning of period	$	13.12		$	14.46
Exercised		13.00			—
Options outstanding at end of period	$	13.12		$	14.46
Options exercisable at end of period		12.96			12.88
Options expected to vest (1)		17.95			18.19
Aggregate intrinsic value (2):
Options outstanding at end of period	$	4,103		$	4,358
Options exercisable at end of period		4,083			4,238
Options expected to vest (1)		21			120
Weighted average remaining contractual life (in years):
Options outstanding at end of period		3.8			5.9
Options exercisable at end of period		3.6			4.6
Options expected to vest (1)		8.3			9.1

(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 six months ended June 30, 2026 and 2025:


	Six Months Ended June 30,
	2026									2025
	Employee			Non-Employee Director			Total			Employee			Non-Employee Director			Total
Number of shares:
Unvested at beginning of period		494,478			38,461			532,939			355,505			47,430			402,935
Granted		191,061			16,239			207,300			180,003			17,292			197,295
Vested		(197,662	)		(21,620	)		(219,282	)		(163,779	)		(26,261	)		(190,040	)
Unvested at end of period		487,877			33,080			520,957			371,729			38,461			410,190

Weighted average grant date fair value per share:
Unvested at beginning of period	$	16.95		$	14.83		$	16.79		$	13.52		$	12.03		$	13.34
Granted		19.60			17.55			19.44			18.82			16.48			18.61
Vested		15.12			13.18			14.93			12.92			10.85			12.64
Unvested at end of period	$	18.73		$	17.24		$	18.63		$	16.35		$	14.83		$	16.20

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 six months ended June 30, 2026 and 2025:


	Six Months Ended June 30,
	2026					2025
	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		620,433		$	13.70		517,131		$	12.83
Granted (1)		169,766			19.60		155,165			18.82
Performance adjustment		157,994			15.86		153,637			10.00
Vested		(326,077	)		10.46		(205,500	)		12.63
Outstanding at end of period, unvested		622,116		$	17.56		620,433		$	13.69

(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 purchased from the open market and shares surrendered to the Company to satisfy tax withholding obligations in connection with the vesting or exercise of stock-based awards. Shares withheld were 21,911 and 267,582, at an average price of $17.26 and $18.66 per share for the three months ended June 30, 2026 and 2025, respectively. Treasury shares acquired from the open market by the employee stock purchase plan for the three months ended June 30, 2026 was 126,769 at a closing price of $18.46 per share.