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Employee Benefits | 6 Months Ended
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Jun. 30, 2019
Employee Benefits [Abstract] |
Employee Benefits |
Note 8: | Employee Benefits
401(k) Savings Plan The Company has a retirement savings 401(k) plan covering substantially all employees. Employees may contribute up to the maximum legal limit with the Bank matching up to 5% of the employee’s salary. Employer contributions charged to expense for the three months ended June 30, 2019 and 2018 totaled $55,000 and $43,000, respectively. Employer contributions charged to expense for the six months ended June 30, 2019 and 2018 totaled $121,000 and $93,000, respectively. Stock-Based Compensation The Company adopted a nonqualified incentive stock option plan (the “Bank7 Corp. 2018 Equity Incentive Plan”) in September 2018. The Bank7 Corp. 2018 Equity Incentive Plan will terminate in September 2028, if not extended. Compensation expense related to the Plan for the three and six month periods ended June 30, 2019 totaled $158,000 and $329,000, respectively. In connection with its IPO in September 2018, the Company granted to employees restricted stock units (RSUs) which vest ratably over five years and stock options which vest ratably over four years. All RSUs and stock options were granted at the fair value of the common stock at the time of the award. The RSUs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. The Company uses newly issued shares for granting RSUs and stock options. The following table is a summary of the stock option activity under the Bank7 Corp. 2018 Equity Incentive Plan (dollar amounts in thousands, except per share data):
|  | Options |  |  | Wgtd. Avg. Exercise Price |  |  | Wgtd. Avg. Remaining Contractual Term |  |  | Aggregate Intrinsic Value |
Six Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2018 |  |  | 150,000 |  |  | $ | 19.00 |  |  |  |  |  |  |
Options Granted |  |  | 20,500 |  |  |  | 16.98 |  |  |  |  |  |  |
Options Exercised |  |  | - |  |  |  | - |  |  |  |  |  |  |
Options Forfeited |  |  | (7,500 | ) |  |  | 19.00 |  |  |  |  |  |  |
Outstanding at June 30, 2019 |  |  | 163,000 |  |  | $ | 18.75 |  |  |  | 9.29 |  |  | $ | 31 |
Exercisable at June 30, 2019 |  |  | - |  |  |  |  |  |  |  | - |  |  |  | - |
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value of each option is expensed over its vesting period. The following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during the periods presented:
|  | Three Months Ended June 30, 2019 |  |  | Six Months Ended June 30, 2019 |
Risk-free interest rate |  |  | 2.44 | % |  |  | 2.48 | %
Dividend yield |  |  | 2.20 | % |  |  | 2.20 | %
Stock price volatility |  |  | 31.14 | % |  |  | 31.14 | %
Expected term |  | 7.01 yrs |  |  | 7.01 yrs |
The following table summarizes share information about RSUs for the six months ended June 30, 2019:
|  | Number of Shares |  |  | Wgtd. Avg. Grant Date Fair Value |
Outstanding at December 31, 2018 |  |  | 130,000 |  |  | $ | 19.09 |
Shares granted |  |  | - |  |  |  | - |
Shares settled |  |  | - |  |  |  | - |
Shares forfeited |  |  | - |  |  |  | - |
End of the period balance |  |  | 130,000 |  |  | $ | 19.09 |
As of June 30, 2019, there was approximately $2.1 million of unrecognized compensation expense related to 130,000 unvested RSUs and $452,000 of unrecognized compensation expense related to 163,000 unvested stock options. The stock option expense is expected to be recognized over a weighted average period of four years, and the RSU expense is expected to be recognized over a weighted average period of five years. As of June 30, 2019, no RSUs or stock options were vested.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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