●
Earnings Feed
Filings
Companies
Insiders
Pricing
Blog
⌘
K
Login
Start Free
T Bancshares, Inc.
|
10-K
Mar 29, 3:52 PM ET
T Bancshares, Inc. 10-K
Loading document...
Contents
19
NOTE 11. STOCK COMPENSATION PLANS
At December 31, 2016, the Company had three stock-based compensation plans (the 2005 Stock Incentive Plan, the 2015 Stock Incentive Plan, and the 2014 Non-employee Directors’ Common Stock Plan). The 2005 Stock Incentive Plan expired during the third quarter of 2015, and therefore no additional awards may be issued under this plan.
The stock incentive plans are designed to provide the Company with the flexibility to grant incentive stock options and non-qualified stock options to its executive and other officers. The purpose of the plans are to provide increased incentive for key employees to render services and to exert maximum effort for the success of the Company. The Company accounts for stock-based employee compensation plans using the fair value-based method of accounting. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted represents the period of time that options are expected to be outstanding. The risk-free rate for the period within the contractual life of the stock option is based upon the U.S. Treasury yield curve at the date of grant. The Company recorded $199,000 and $98,000 in compensation expense for the years ended December 31, 2016 and 2015, respectively, in connection with the stock compensation plans.
2005 Stock Incentive Plan
The 2005 Stock Incentive Plan (the “2005 Plan”) is administered by the Board of Directors and had a term of 10 years. The 2005 Stock Incentive Plan expired during the third quarter of 2015 and therefore no additional awards may be issued under this plan.
As of December 31, 2016 and 2015, options to purchase a total of 87,000 and 102,000 shares, respectively, under the 2005 Plan were outstanding with an average exercise price of $6.84 and $7.38, respectively. These options vest 20% annually through March 2019. As of December 31, 2016, there was $59,000 of total unrecognized compensation cost related to non-vested equity-based compensation awards expected to vest, with an average vesting period of 2.2 years.
The following is a summary of activity in the 2005 Plan for the year-ended December 31:
The weighted-average grant date fair value of the options for the years ended December 31, 2016 and 2015 was $3.50 and $3.33, respectively.
Aggregate intrinsic value of the outstanding stock options and exercisable stock options under the 2005 Plan at December 31, 2016 was $319,000 and $235,000, respectively. Aggregate intrinsic value of the outstanding stock options and exercisable stock options under the 2005 Plan at December 31, 2015, was $163,000 and $115,000, respectively. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $9.60 and $7.00 at December 31, 2016 and 2015, respectively, and the exercise price multiplied by the number of options outstanding. There were no stock options exercised during 2016 and 2015.
All options carry exercise prices ranging from $1.01 to $13.00. At December 31, 2016, there were 68,400 exercisable options, of which 27,000 shares had no intrinsic value as the exercise price exceeded the stock price.
2015 Stock Incentive Plan
The shareholders of the Company approved the 2015 Stock Incentive Plan (the “2015 Plan”) at the annual shareholder meeting held on June 24, 2015. The 2015 Plan authorized the granting of options to purchase up to 270,000 shares of common stock of the Company to employees of the Company and its subsidiaries. The Company granted 180,000 stock options with an exercise price of $7.15 during the fourth quarter of 2015. A summary of the assumptions used in calculating the fair value of the option awards are as follows:
These options vest 20% annually through October 2020. As of December 31, 2016 there was $285,000 of total unrecognized compensation cost related to non-vested equity-based compensation awards expected to vest, with an average vesting period of 3.8 years.
The following is a summary of activity in the 2015 Plan for the year-ended December:
The weighted-average grant date fair value of the options for the years ended December 31, 2016 and 2015 was $2.10.
All options carry exercise prices of $7.15. At December 31, 2016, there were 35,500 exercisable options, all of which had intrinsic value. Aggregate intrinsic value of the outstanding stock options and exercisable stock options under the 2015 Plan at December 31, 2016 was $435,000 and $87,000, respectively. There was no intrinsic value of the outstanding stock options and exercisable stock options at December 31, 2015, as the exercise price exceeded the stock price. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $9.60 and $7.00 at December 31, 2016 and 2015, respectively, and the exercise price multiplied by the number of options outstanding. There were no stock options exercised during 2016 and 2015.
Non-employee Directors’ Common Stock Plan
In December 2014, the Board of Directors approved the 2014 Non-employee Directors’ Common Stock Plan (the “2014 Plan”). The 2014 Plan is intended to promote the best interests of the Company and its shareholders by providing shares of the Company’s common stock to each non-employee director, for his or her service as a director (“service shares”), which shares are intended to promote an increased personal interest in the welfare of the Company by those individuals who are primarily responsible for shaping the long-range plans of the Company.
The 2014 Plan is administered by the Board of Directors. The number of service shares issuable under this plan shall not exceed 100,000. On June 22, 2016, the Company granted 13,750 service shares to the non-employee directors. The grant date fair value was $7.05 per share, resulting in stock compensation expense of approximately $97,000 in 2016.On June 24, 2015, the Company granted 7,975 service shares to the non-employee directors. The grant date fair value was $7.25 per share, resulting in stock compensation expense of approximately $58,000 in 2015.