EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Tables)
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12 Months Ended |
Dec. 31, 2021 |
|---|
| Employee Benefits and Share-based Compensation, Noncash [Abstract] |
|
| Payment Made for Employee Benefit Plans |
The following 401(k) Plan match and other discretionary contributions were made to the Company’s employees, in accordance with the plans described above, in 2021, 2020, and 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
2019 |
401(k) Plan |
|
$ |
6,515 |
|
$ |
6,265 |
|
$ |
5,550 |
ESOP |
|
|
750 |
|
|
1,000 |
|
|
1,163 |
Cash |
|
|
674 |
|
|
697 |
|
|
780 |
Total |
|
$ |
7,939 |
|
$ |
7,962 |
|
$ |
7,493 |
|
| Schedule of Recognized Stock-Based Compensation Expense |
For the years ended December 31, 2021, 2020, and 2019, the Company recognized stock-based compensation expense, which is included in “Salaries and benefits” expense on the Company’s Consolidated Statements of Income (dollars in thousands, except per share data) as follows:
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|
|
|
Year Ended December 31, |
|
|
2021 |
|
2020 |
|
2019 |
Stock-based compensation expense |
|
$ |
10,091 |
|
$ |
9,258 |
|
$ |
8,332 |
Reduction of income tax expense |
|
|
2,119 |
|
|
1,944 |
|
|
1,750 |
Per share compensation cost |
|
$ |
0.10 |
|
$ |
0.09 |
|
$ |
0.08 |
|
| Summary of Stock Option Activity |
The following table summarizes the stock option activity during the year ended December 31, 2021:
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Weighted |
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|
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|
|
|
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Weighted |
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Average |
|
|
|
|
|
Stock |
|
Average |
|
Remaining |
|
Aggregate |
|
|
Options |
|
Exercise |
|
Contractual |
|
Intrinsic |
|
|
(shares) |
|
Price |
|
Life |
|
Value |
Outstanding as of December 31, 2020 |
|
348,660 |
|
$ |
33.81 |
|
|
|
|
|
Granted |
|
— |
|
|
— |
|
|
|
|
|
Exercised |
|
(104,514) |
|
|
29.83 |
|
|
|
|
|
Forfeited |
|
(3,932) |
|
|
32.17 |
|
|
|
|
|
Expired |
|
(31,459) |
|
|
36.53 |
|
|
|
|
|
Outstanding as of December 31, 2021 |
|
208,755 |
|
|
35.43 |
|
1.11 |
|
$ |
529,246 |
Exercisable as of December 31, 2021 |
|
192,561 |
|
|
35.73 |
|
1.04 |
|
|
440,827 |
|
| Summary of Nonvested Stock Activity |
The following table summarizes the restricted stock activity for the year ended December 31, 2021:
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|
|
|
|
|
|
|
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Weighted |
|
|
Number of |
|
Average |
|
|
Shares of |
|
Grant-Date Fair |
|
|
RSAs |
|
Value |
Unvested as of December 31, 2020 |
|
406,507 |
|
$ |
35.61 |
Granted |
|
241,447 |
|
|
37.47 |
Net settle for taxes |
|
(56,119) |
|
|
35.74 |
Vested |
|
(168,377) |
|
|
35.95 |
Forfeited |
|
(23,391) |
|
|
36.03 |
Unvested as of December 31, 2021 |
|
400,067 |
|
|
36.55 |
|
| Summary of Performance Stock Activity |
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|
|
|
|
|
|
|
Number of |
|
Weighted Average |
|
|
Shares of |
|
Grant- |
|
|
PSUs |
|
Date Fair Value |
Unvested as of December 31, 2020 |
|
197,810 |
|
$ |
34.84 |
Granted |
|
103,308 |
|
|
34.29 |
Net settle for taxes |
|
(15,034) |
|
|
38.00 |
Vested |
|
(46,622) |
|
|
37.64 |
Forfeited |
|
(10,107) |
|
|
33.18 |
Unvested as of December 31, 2021 |
|
229,355 |
|
|
33.89 |
|
| Schedule of Performance Stock Units Valuation Assumptions |
During years ended December 31, 2021, 2020 and 2019 PSUs were awarded with a market based component based on total shareholder return. The fair value of each PSU granted is estimated on the date of grant using the Monte Carlo simulation lattice model that uses the assumptions noted in the following table:
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|
|
2021(5) |
|
2020(5) |
|
2019(5) |
|
Dividend yield(1) |
|
2.66 |
% |
2.83 |
% |
2.57 |
% |
Expected life in years(2) |
|
2.85 |
|
2.86 |
|
2.86 |
|
Expected volatility(3) |
|
45.75 |
% |
24.33 |
% |
24.04 |
% |
Risk-free interest rate(4) |
|
0.20 |
% |
1.35 |
% |
2.48 |
% |
| (1) |
Calculated as the ratio of the current dividend paid per the stock price on the date of grant. |
| (2) |
Represents the remaining performance period as of the grant date. |
| (3) |
Based on the historical volatility for the period commensurate with the expected life of the PSUs. |
| (4) |
Based upon the zero-coupon U.S. Treasury rate commensurate with the expected life of the PSUs on the grant date. |
| (5) |
Assumptions disclosed represent those used in the primary annual issuance. |
|
| Estimated Unamortized Compensation Expense Recognized in Future |
The estimated unamortized compensation expense, net of estimated forfeitures, related to, restricted stock, performance stock and stock options issued and outstanding as of December 31, 2021 that will be recognized in future periods is as follows (dollars in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
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Restricted |
|
Performance |
|
|
Stock |
|
|
|
|
|
Stock |
|
Stock |
|
|
Options |
|
Total |
2022 |
|
$ |
5,109 |
|
$ |
1,875 |
|
$ |
50 |
|
$ |
7,034 |
2023 |
|
|
2,902 |
|
|
962 |
|
|
3 |
|
|
3,867 |
2024 |
|
|
482 |
|
|
— |
|
|
— |
|
|
482 |
2025 |
|
|
4 |
|
|
— |
|
|
— |
|
|
4 |
Total |
|
$ |
8,497 |
|
$ |
2,837 |
|
$ |
53 |
|
$ |
11,387 |
|