Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation and Other Benefit Plans

v3.20.2
Stock-Based Compensation and Other Benefit Plans
9 Months Ended
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation and Other Benefit Plans

NOTE 11. STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS 

Spirit of Texas Bancshares, Inc. 2008 Stock Plan (the “2008 Stock Plan”)

Option activity for the period indicated is summarized as follows:

 

 

 

2008 Stock Plan

 

 

 

Options

 

 

Weighted

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

(in thousands)

 

 

Weighted

Average

Remaining

Contractual

Life (Years)

 

Outstanding at January 1, 2020

 

 

898,572

 

 

$

-

 

 

 

 

 

 

 

 

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

(40,500

)

 

$

11.93

 

 

$

-

 

 

 

 

 

Forfeited

 

 

(1,400

)

 

$

15.89

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2020

 

 

856,672

 

 

$

13.45

 

 

$

-

 

 

 

3.72

 

Vested and exercisable at September 30, 2020

 

 

826,107

 

 

$

13.42

 

 

$

-

 

 

 

3.61

 

 

The total unrecognized compensation cost of $91 thousand related to the 2008 Stock Plan for the share awards outstanding at September 30, 2020 will be recognized over a weighted average remaining period of 0.83 years.

Spirit of Texas Bancshares, Inc. 2017 Stock Plan (the “2017 Stock Plan”)

Option activity for the period indicated is summarized as follows:

 

 

 

2017 Stock Plan

 

 

 

Options

 

 

Weighted

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

(in thousands)

 

 

Weighted

Average

Remaining

Contractual

Life (Years)

 

Outstanding at January 1, 2020

 

 

199,447

 

 

$

17.53

 

 

 

 

 

 

 

 

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(1,733

)

 

$

15.00

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2020

 

 

197,714

 

 

$

17.55

 

 

$

-

 

 

 

6.96

 

Vested and exercisable at September 30, 2020

 

 

100,512

 

 

$

16.98

 

 

$

-

 

 

 

6.84

 

 

The total unrecognized compensation cost of $357 thousand related to the 2017 Stock Plan for the share awards outstanding at September 30, 2020 will be recognized over a weighted average remaining period of 2.30 years.

2017 Stock Plan – Restricted Stock Unit Awards

On four different dates during the nine-month period ended September 30, 2020, the Company granted a total of 138,575 restricted stock units to employees and directors that vest in full (i.e., cliff vesting) on the five year anniversary of the grant date. The fair value of the restricted stock units on the grant date was $1.5 million and will be recognized as compensation expense over the requisite vesting period ending on the respective five year anniversary of the restricted stock unit award’s grant date.

The following table presents the activity during the period related to restricted stock units from the 2017 Stock Plan:

 

 

 

2017 Stock Plan

 

 

 

Restricted Stock Unit Awards

 

 

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

Outstanding at January 1, 2020

 

 

59,280

 

 

$

22.11

 

Granted

 

 

138,575

 

 

 

11.18

 

Vested

 

 

(14,788

)

 

 

22.24

 

Forfeited

 

 

(2,500

)

 

 

21.20

 

Outstanding at September 30, 2020

 

 

180,567

 

 

$

13.73

 

 

A summary of selected data related to stock-based compensation expense for the three months ended September 30, 2020 and 2019 are as follows:

 

 

 

Restricted Stock Unit Awards

 

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

 

(Dollars in thousands)

 

Stock-based compensation expense

 

$

647

 

 

$

77

 

Unrecognized compensation expense related to stock-based compensation

 

$

2,443

 

 

$

1,138

 

Weighted-average life over which expense is expected to be recognized (years)

 

 

4.49

 

 

 

4.44

 

 

Warrants

 

In connection with the acquisition of Bank4Texas in 2010, the Company issued warrants for 12,491 shares of stock. The warrants are exercisable at $10.50 per share and expired in August 2020. Activity for the Bank4Texas Warrants for the period indicated is summarized as follows: 

 

 

 

Bank4Texas Warrants

 

 

 

Warrants

 

 

Weighted

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

(in thousands)

 

 

Weighted

Average

Remaining

Contractual

Life (Years)

 

Outstanding at January 1, 2020

 

 

9,872

 

 

$

10.50

 

 

 

 

 

 

 

 

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

(5,933

)

 

$

10.50

 

 

 

 

 

 

 

 

Forfeited (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expired

 

 

(3,939

)

 

 

11

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2020

 

 

-

 

 

$

-

 

 

 

 

 

 

-

 

Vested and exercisable at September 30, 2020

 

 

-

 

 

$

-

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Forfeitures are accounted for in the period they occur

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In connection with the acquisition of Oasis Bank in 2012, the Company issued warrants for 19,140 shares of stock. The Oasis warrants are exercisable at $12.84 per share and expire in November 2022. There was no activity during the three or nine months ended September 30, 2020 on the Oasis warrants.