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STOCK-BASED COMPENSATION | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | 13. STOCK-BASED COMPENSATION The Company’s 2021 Long-Term Stock Incentive Plan allows the granting of shares of the Company’s common stock as incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units and stock appreciation rights to directors, officers and employees of the Company and its subsidiaries. As of December 31, 2024, the total number of shares available for grant in all active plans was 250,749. There are no shares remaining for issuance with respect to the stock option plans approved in 2006 and 2012. Options granted under the stock incentive plans are, in general, exercisable not earlier than one year after the date of grant, at a price equal to the fair value of the common stock on the date of grant and expire not more than ten years after the date of grant. Stock options may vest during a period of up to five years after the date of grant. The Company has a policy of using authorized but unissued shares to satisfy option exercises. Upon adoption of ASU 2016-09, “Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. Changes in options outstanding during 2024 were as follows:
|  |  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  | Weighted |  |  | Average |  |  | Aggregate |
|  |  |  |  | Average |  |  | Remaining |  |  | Intrinsic |
|  | Number of |  |  | Exercise |  |  | Contractual |  |  | Value |
|  | Options |  |  | Price |  |  | Term |  |  | (In Thousands) |
Balance, January 1, 2024 |  |  | 1,400 |  |  | $ | 19.15 |  |  |  |  |  |  |
Exercised during 2024 |  |  | — |  |  |  | — |  |  |  |  |  |  |
Expired during 2024 |  |  | (1,400 | ) |  |  | 19.15 |  |  |  |  |  |  |
Forfeited during 2024 |  |  | — |  |  |  | — |  |  |  |  |  |  |
Balance, December 31, 2024 |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Vested and expected to vest |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Exercisable at December 31, 2024 |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
There were no stock options granted in 2024. As of December 31, 2024, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s stock incentive plans. The Company issued performance and service-based restricted stock units in 2024, 2023 and 2022. Service-based units vest ratably over a three- or five-year period. There were no service-based restricted stock units granted under the 2021 Long-Term Stock Incentive Plan during 2024. The performance-based awards are dependent upon the Company meeting certain performance criteria and, to the extent the performance criteria are met, will cliff vest at the end of the performance period, which is generally three years. There were no performance-based restricted stock units granted under the 2021 Long-Term Stock Incentive Plan during 2024. Changes in non-vested shares dependent on performance criteria for 2024 were as follows:
|  |  |  |  | Weighted |
|  |  |  |  | Average |
|  | Number of |  |  | Grant Date |
|  | Shares |  |  | Fair Value |
Balance, January 1, 2024 |  |  | 176,364 |  |  | $ | 32.40 |
Granted during 2024 |  |  | 4,705 |  |  |  | 31.36 |
Vested during 2024 (1) |  |  | (45,592 | ) |  |  | 31.36 |
Forfeited during 2024 |  |  | — |  |  |  | — |
Balance, December 31, 2024 |  |  | 135,477 |  |  | $ | 33.35 |
(1) Settled in cash. Changes in service based restricted stock units for 2024 were as follows:
|  |  |  |  | Weighted |
|  |  |  |  | Average |
|  | Number of |  |  | Grant Date |
|  | Shares |  |  | Fair Value |
Balance, January 1, 2024 |  |  | 626,742 |  |  | $ | 29.62 |
Vested during 2024 (1) |  |  | (249,338 | ) |  |  | 27.79 |
Shares to be settled in cash |  |  | (118,655 | ) |  |  | 21.64 |
Forfeited during 2024 |  |  | (10,844 | ) |  |  | 29.82 |
Balance, December 31, 2024 |  |  | 247,905 |  |  | $ | 33.00 |
(1) Includes 100,349 shares that settled in cash. As of December 31, 2024, there was $6.0 million of total unrecognized compensation cost related to both service- and performance-based units. That cost is expected to be recognized over a weighted average period of 1.98 years. Total stock-based compensation expense recognized for stock awards/units totaled $13.0 million, $10.7 million and $7.8 million in 2024, 2023 and 2022, respectively. There was no stock-based compensation expense related to stock options for the years ended December 31, 2024, 2023 and 2022, respectively. Phantom Stock Plan: During the first quarter of 2024, the Company adopted the Peapack-Gladstone Financial Corporation 2024 Phantom Stock Plan ("Phantom Plan"). The Phantom Plan allows the Company to issue performance-based and service-based awards which will be paid in cash. The award of a phantom unit entitles the participant to a cash payment equal to the value of the unit on the vesting date, which is the fair market value of a common share of the Company's stock on such vesting date. The Company issued performance-based and service-based phantom units in 2024. Service-based phantom units vest ratably over a three-year period. There were 262,811 service-based phantom units granted under the Phantom Plan during 2024. Additionally, there are 118,655 restricted stock units that were converted to phantom units and will settle in cash in 2025 and 2026. The performance-based phantom units are dependent upon the Company meeting certain performance criteria and, to the extent the performance criteria are met, will cliff vest at the end of the performance period, which is three years. There were 110,047 performance-based units granted under the Phantom Plan during 2024. Expense associated with phantom units are recorded in salary and employee benefits expense based on the fair value of the units on the balance sheet date. The fair value of these awards is updated at each balance sheet date and changes in the fair value of the vested portions of the awards are recorded as increases or decreases to compensation expense within salary and employee benefits in the Consolidated Statements of Income. All of the outstanding phantom units at December 31, 2024 met the criteria to be treated under liability classification in accordance with ASC 718, given that these awards will settle in cash on the vesting date. Compensation expense for the phantom units is based on the fair value of the units as of the balance sheet date as further discussed above, and such costs are recognized ratably over the service period of the awards. As the fair value of liability awards is required to be re-measured each period end, stock compensation expense amounts recognized in future periods for these awards will vary. The estimated future cash payments of these awards are presented as liabilities within "Accrued expenses and other liabilities" in the Consolidated Statement of Condition. As of December 31, 2024, there was $9.6 million of unrecognized compensation costs related to non-vested phantom units.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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