v3.26.1
Share Based Compensation
3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Share Based Compensation Share-Based Compensation
The 2017 Employees LTIP was adopted by the Board of Directors of Park on January 23, 2017 and was approved by Park's shareholders at the Annual Meeting of Shareholders on April 24, 2017. The 2017 Employees LTIP makes equity-based awards and cash-based awards available for grant to employee participants in the form of incentive stock options, nonqualified stock options, SARs, restricted stock, restricted stock units, other stock-based awards and cash-based awards. Under the 2017 Employees LTIP, 750,000 common shares are authorized to be delivered in connection with grants under the 2017 Employees LTIP. The common shares to be delivered under the 2017 Employees LTIP are to consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares, including common shares purchased in the open market or in private transactions. At March 31, 2026, 77,332 common shares were available for future grants under the 2017 Employees LTIP.

The 2017 Non-Employee Directors LTIP was adopted by the Board of Directors of Park on January 23, 2017 and was approved by Park's shareholders at the Annual Meeting of Shareholders on April 24, 2017. The 2017 Non-Employee Directors LTIP makes equity-based awards and cash-based awards available for grant to non-employee director participants in the form of nonqualified stock options, SARs, restricted stock, restricted stock units, other stock-based awards, and cash-based awards. Under the 2017 Non-Employee Directors LTIP, 150,000 common shares are authorized to be delivered in connection with grants under the 2017 Non-Employee Directors LTIP. The common shares to be delivered under the 2017 Non-Employee Directors LTIP are to consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares, including common shares purchased in the open market or in private transactions. At March 31, 2026, 30,000 common shares were available for future grants under the 2017 Non-Employee Directors LTIP.

During the three months ended March 31, 2026 and 2025, the Compensation Committee of the Board of Directors of Park granted awards of PBRSUs, under the 2017 Employees LTIP, covering an aggregate of 58,778 common shares and 49,350 common shares, respectively, to certain employees of Park and its subsidiaries. At March 31, 2026, Park reported 192,359
nonvested PBRSUs. The number of PBRSUs earned or settled will depend on the level of achievement with respect to certain performance criteria over a three-year period. The PBRSUs are also subject to subsequent service-based vesting.

Additionally, on February 1, 2026, Park granted 13,890 TBRSUs to former First Citizens employees. The number of TBRSUs earned or settled are subject to service-based vesting.

A summary of changes in the common shares subject to nonvested PBRSUs and TBRSUs for the three months ended March 31, 2026 and 2025 follows. PBRSUs herein represent the maximum number of nonvested PBRSUs. The fair value of the PBRSUs and TBRSUs was determined using the quoted price of Park stock on the date of grant.

Common shares subject to PBRSUs and TBRSUsWeighted-Average Grant-Date Fair Value
Nonvested at January 1, 2025186,020 $131.20 
Granted49,350 170.72 
Vested(51,833)119.31 
Forfeited— — 
Adjustment for performance conditions of PBRSUs (1)
— — 
Nonvested at March 31, 2025183,537 $145.19 
Nonvested at January 1, 2026182,384 $145.13 
Granted72,668 159.59 
Vested(47,355)138.65 
Forfeited(1,448)148.13 
Adjustment for performance conditions of PBRSUs (1)
— — 
Nonvested at March 31, 2026 (2)
206,249 $151.69 
(1) The number of PBRSUs earned depends on the level of achievement with respect to certain performance criteria. Adjustment herein, if any, represents the difference between the maximum number of common shares which could be earned and the actual number earned for those PBRSUs as to which the performance period was completed.
(2) Nonvested amount herein represents the maximum number of nonvested PBRSUs and TBRSUs. As of March 31, 2026, an aggregate of 205,596 PBRSUs and TBRSUs were expected to vest.

A summary of awards vested during the three months ended March 31, 2026 and 2025 follows:

Three Months Ended
March 31,
20262025
PBRSUs vested47,35551,833 
Common shares withheld to satisfy employee income tax withholding obligations17,66019,468 
Net common shares issued29,69532,365

Share-based compensation expense of $2.2 million and $2.0 million was recognized for the three-month periods ended March 31, 2026 and 2025, respectively.
The following table details expected additional share-based compensation expense related to PBRSUs and TBRSUs outstanding at March 31, 2026:

(In thousands)
Nine months ending December 31, 2026$6,860 
20276,837 
20284,176 
20291,758 
2030277 
Total$19,908