Stock Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation:

In April of 2022, the Company, with the approval of shareholders, created the 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan permits the award of up to one million shares to the Company’s directors and employees to attract and retain exceptional personnel, motivate performance and, most importantly, to help align the interests of the Company’s executives with those of the Company’s shareholders. The 2022 Plan replaced the 2017 Plan. There were 54,095 service time based share awards and 102,750 performance based share awards granted under the 2022 Plan during the six month period ended June 30, 2023, as shown in the table below. The actual number of performance based shares issued will depend on the relative performance of the Company’s average return on equity compared to a group of peer companies over a three year vesting period, ending December 31, 2025. As of June 30, 2023, 786,655 shares are still available to be awarded from the 2022 Plan. The 2017 Plan has been sunset.

The restricted stock awards were granted with a fair value price equal to the market price of the Company’s common stock at the date of the grant. Expense recognized was $649 thousand and $1.3 million for the three and six month periods ended June 30, 2023, respectively. During the prior periods, the expense recognized was $438 thousand and $803 thousand for the three and six month periods ended June 30, 2022, respectively. As of June 30, 2023, there was $4.0 million of total unrecognized compensation expense related to the nonvested shares granted under the Plan. The remaining cost is expected to be recognized over 2.7 years.

The following is the activity under the Plans during the six month period ended June 30, 2023.



	Maximum Awarded Service Units			Weighted Average Grant Date Fair Value		Maximum Awarded Performance Units			Weighted Average Grant Date Fair Value
Beginning balance - non-vested shares		193,015		$	16.69		137,369		$	15.85
Granted		54,095			13.12		102,750			14.16
Vested		(27,740	)		12.96		(30,635	)		14.35
Forfeited		(1,541	)		17.64		0			0.00
Ending balance - non-vested shares		217,829		$	15.84		209,484		$	15.01

The following is the activity under the Plans during the six month period ended June 30, 2022.


	Maximum Awarded Service Units			Weighted Average Grant Date Fair Value		Maximum Awarded Performance Units			Weighted Average Grant Date Fair Value
Beginning balance - non-vested shares		99,564		$	16.13		158,988		$	14.40
Granted		101,768			17.05		56,724			17.25
Vested		(20,771	)		16.81		(65,481	)		17.48
Forfeited		0			0.00		(12,862	)		14.74
Ending balance - non-vested shares		180,561		$	16.92		137,369		$	15.85

The 58,375 shares that vested during the six month period ended June 30, 2023 had a weighted average fair value of $13.69 per share.