Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation and Other Benefit Plans

v3.20.4
Stock-Based Compensation and Other Benefit Plans
12 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation and Other Benefit Plans

NOTE 15. STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS

Spirit of Texas Bancshares, Inc. 2008 Stock Plan

During 2008, the Company established an incentive stock plan (the “2008 Stock Plan”). Under the 2008 Stock Plan, stockholders authorized options to purchase up to 914,500 shares of Company stock. During 2015, stockholders authorized an increase in options to purchase up to 1,750,000 shares of Company common stock. The option terms cannot exceed 10 years from the grant date. Options are fully vested after five years of employment. Options for a total of 840,872 shares of the Company stock are outstanding as of December 31, 2020. At December 31, 2020, the Company had 314,375 available shares for future option grants under the 2008 Stock Plan.

The following table presents the activity during the year ended December 31, 2020 related to the 2008 Stock Plan:

 

 

 

2008 Stock Plan

 

 

 

Options

 

 

Weighted

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

(thousands)

 

 

Weighted

Average

Remaining

Contractual

Life (Years)

 

Outstanding at January 1, 2020

 

 

898,572

 

 

$

13.39

 

 

$

8,636

 

 

4.38

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

(50,500

)

 

 

12.09

 

 

 

238

 

 

 

 

Forfeited (1)

 

 

(2,200

)

 

 

15.32

 

 

 

 

 

 

 

 

 

Expired

 

 

(5,000

)

 

 

10.50

 

 

 

32

 

 

 

 

Outstanding at December 31, 2020

 

 

840,872

 

 

$

13.48

 

 

 

2,792

 

 

 

3.49

 

Vested and exercisable at December 31, 2020

 

 

798,512

 

 

$

13.46

 

 

 

2,667

 

 

 

3.39

 

 

(1)

Forfeitures are accounted for in the period they occur

 

There were no stock options granted for the years ended December 31, 2020 or 2019 out of the 2008 Stock Plan.  

A summary of selected data related to stock-based compensation expense follows:

 

 

 

2008 Stock Plan

 

 

 

For the Years Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(Dollars in thousands)

 

Stock-based compensation expense

 

$

183

 

 

$

328

 

 

$

545

 

Amount of cash received from exercise of awards

 

 

4

 

 

 

1,880

 

 

 

2,991

 

 

 

 

2008 Stock Plan

 

 

 

As of December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(Dollars in thousands)

 

Unrecognized compensation expense related to stock-based

   compensation

 

$

49

 

 

$

243

 

 

$

625

 

Weighted-average life over which expense is expected to be

   recognized (years)

 

 

0.6

 

 

 

1.3

 

 

 

1.9

 

 

Spirit of Texas Bancshares, Inc. 2017 Stock Plan

On February 23, 2017, the Company established an incentive stock plan to attract and retain officers, employees, directors and other service providers (the “2017 Stock Plan”). Under the 2017 Stock Plan, stockholders authorized options to purchase up to 1,000,000 shares of Company common stock. The option terms cannot exceed 10 years from the grant date. Directors’ stock options vest immediately and all employees’ options vest after 5 years of employment. Options for a total of 197,714 shares of the Company common stock are outstanding as of December 31, 2020. At December 31, 2020, the Company had 628,263 available shares for future option grants.

The following table presents the activity during the year ended December 31, 2020 related to the 2017 Stock Plan:

 

 

 

2017 Stock Plan

 

 

 

Options

 

 

Weighted

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

(thousands)

 

 

Weighted

Average

Remaining

Contractual

Life (Years)

 

Outstanding at January 1, 2020

 

 

199,447

 

 

$

17.53

 

 

$

1,091

 

 

 

7.70

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

 

 

 

 

 

Forfeited (1)

 

 

(1,733

)

 

 

15.00

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2020

 

 

197,714

 

 

$

17.55

 

 

$

148

 

 

 

6.71

 

Vested and exercisable at December 31, 2020

 

 

100,953

 

 

$

16.98

 

 

$

18

 

 

 

6.59

 

 

(1)

Forfeitures are accounted for in the period they occur

A summary of selected data related to stock-based compensation expense follows:

 

 

 

2017 Stock Plan

 

 

 

For the Years Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

 

 

 

 

(Dollars in thousands)

 

Stock-based compensation expense

 

$

190

 

 

$

170

 

 

$

127

 

Amount of cash received from exercise of awards

 

 

611

 

 

 

86

 

 

 

150

 

 

 

 

2017 Stock Plan

 

 

 

As of December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

 

 

 

 

(Dollars in thousands)

 

Unrecognized compensation expense related to stock-based compensation

 

$

318

 

 

$

515

 

 

$

685

 

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

 

 

2.1

 

 

 

2.8

 

 

 

4.1

 

 

2017 Stock Plan – Restricted Stock Unit Awards

On five different dates during the year ended December 31, 2020, the Company granted a total of 159,247 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 $1.8 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 for the year ended December 31, 2020 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

 

 

$

 

Granted

 

 

159,247

 

 

$

11.69

 

Vested

 

 

(15,788

)

 

 

 

 

Forfeited

 

 

(2,500

)

 

 

21.20

 

Outstanding at December 31, 2020

 

 

200,239

 

 

$

13.31

 

 

A summary of selected data related to stock-based compensation expense for the years ended December 31, 2020 and 2019 are as follows:

 

 

 

Restricted Stock Unit Awards

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Dollars in thousands)

 

Stock-based compensation expense

 

$

606

 

 

$

141

 

Unrecognized compensation expense related to stock-based compensation

 

$

2,298

 

 

$

1,181

 

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

 

 

4.24

 

 

 

4.45

 

 

 

Bank4Texas Warrants

 

In connection with the acquisition of Bank4Texas in 2010, the Company issued warrants for 12,491 shares of stock. The Bank4Texas warrants were exercisable at $10.50 per share and expired in August 2020.

The following table presents the activity for the period indicated related to the Bank4Texas Warrants:

 

 

 

Bank4Texas Warrants

 

 

 

Warrants

 

 

Weighted

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

(thousands)

 

 

Weighted

Average

Remaining

Contractual

Life (Years)

 

Outstanding at January 1, 2020

 

 

9,872

 

 

$

10.50

 

 

 

 

 

 

 

 

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

(5,514

)

 

 

10.50

 

 

$

35

 

 

 

 

 

Forfeited (1)

 

 

(4,358

)

 

 

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2020

 

 

-

 

 

$

10.50

 

 

$

-

 

 

 

 

Vested and exercisable at December 31, 2020

 

 

-

 

 

$

10.50

 

 

$

-

 

 

 

 

(1)

Forfeitures are accounted for in the period they occur

 

The amount of cash received by the Company from the exercise of the warrants was $40 thousand. There is no remaining expense to be recognized on the Bank4Texas Warrants.

Oasis Warrants

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. None of these warrants have been exercised.

Spirit of Texas Bank 401(k) Retirement Plan

The Company sponsors the Spirit of Texas Bank, SSB 401(k) Plan, a tax-qualified, deferred compensation plan (the “401(k) Plan”). Under the terms of the 401(k) Plan eligible employees may contribute a portion of compensation not exceeding the limits set by law. Employees are eligible to participate at the completion of one month of service. The 401(k) Plan allows a matching employer contribution equal to 100% of elective deferrals that do not exceed 3% of compensation. Matching contributions are fully vested after six years of service. Total 401(k) matching employer contribution expense amounted to $1.3 million, $1.2 million and $796 thousand for the years ended December 31, 2020, 2019 and 2018, respectively.