Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation and Other Benefit Plans

v3.8.0.1
Stock-Based Compensation and Other Benefit Plans
3 Months Ended
Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation and Other Benefit Plans

NOTE 8. STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS 

Spirit of Texas Bancshares, Inc. 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, 2018

 

 

1,415,350

 

 

$

12.59

 

 

 

 

 

 

 

 

 

Granted

 

 

 

 

 

 

 

$

 

 

 

 

 

Exercised

 

 

(191,428

)

 

 

10.63

 

 

$

741

 

 

 

 

 

Forfeited (1)

 

 

(11,875

)

 

 

13.33

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2018

 

 

1,212,047

 

 

$

12.89

 

 

$

1,951

 

 

 

5.43

 

Exercisable at March 31, 2018

 

 

936,397

 

 

$

12.51

 

 

$

1,863

 

 

 

4.85

 

Vested at March 31, 2018

 

 

936,397

 

 

$

12.51

 

 

$

1,863

 

 

 

4.85

 

 

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

The total unrecognized compensation cost of $1.1 million related to the 2008 Stock Plan for the share awards outstanding at March 31, 2018 will be recognized over a weighted average remaining period of 2.34 years.

Spirit of Texas Bancshares, Inc. 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, 2018

 

 

127,927

 

 

$

15.00

 

 

 

 

 

 

 

 

 

Granted

 

 

4,850

 

 

 

15.00

 

 

$

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forfeited (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2018

 

 

132,777

 

 

$

15.00

 

 

$

 

 

 

8.96

 

Exercisable at March 31, 2018

 

 

75,600

 

 

$

15.00

 

 

$

 

 

 

8.90

 

Vested at March 31, 2018

 

 

75,600

 

 

$

15.00

 

 

$

 

 

 

8.90

 

 

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

 

The fair values of the stock options granted for the three months ended March 31, 2018 were determined utilizing the Black-Scholes pricing model methodology. A summary of assumptions used to calculate the fair values of the 2017 Stock Plan awards is presented below:

 

 

 

2017 Stock Plan

 

 

 

Three Months Ended

 

 

 

March 31, 2018

 

Expected volatility

 

 

20

%

Expected dividend yield

 

 

0.0

%

Expected term (years)

 

7.5

 

Risk-free interest rate

 

2.36 - 2.46%

 

Weighted average grant date fair value

 

$

4.36

 

 

The Company uses the calculated value method to account for its options. Management determined that the SNL Small Cap U.S. Bank Index is representative of the Company’s industry and has used the historical closing return values of that index to estimate volatility. The expected term represents the period of time that the 2017 Stock Plan awards are expected to be outstanding from the date of grant. The risk-free interest rate is based on the U.S. Treasury yields for the expected term of the instrument.

The total unrecognized compensation cost of $223 thousand related to the 2017 Stock Plan for the share awards outstanding at March 31, 2018 will be recognized over a weighted average remaining period of 4.03 years.

Warrants

Warrant activity for the period indicated is summarized as follows:

 

 

 

Spirit of Texas Bancshares, Inc. 2008 Warrants

 

 

 

Options

 

 

Weighted

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

(in thousands)

 

 

Weighted

Average

Remaining

Contractual

Life (Years)

 

Outstanding at January 1, 2018

 

 

105,000

 

 

$

10.00

 

 

 

 

 

 

 

 

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

(15,000

)

 

 

10.00

 

 

$

68

 

 

 

 

 

Forfeited (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2018

 

 

90,000

 

 

$

10.00

 

 

$

405

 

 

 

0.63

 

Exercisable at March 31, 2018

 

 

90,000

 

 

$

10.00

 

 

$

405

 

 

 

0.63

 

Vested at March 31, 2018

 

 

90,000

 

 

$

10.00

 

 

$

405

 

 

 

0.63

 

 

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

There is no remaining expense to be recognized on the Spirit of Texas Bancshares, Inc. 2008 Warrants.

There was no activity during the three months ended March 31, 2018 on the Bank4Texas or Oasis Warrants.