Incentive and Restricted Stock Plan and Dividend Reinvestment Plan

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

INCENTIVE AND RESTRICTED STOCK PLAN AND DIVIDEND REINVESTMENT PLAN

We adopted an Incentive Stock Plan in 2014 that provides for cash performance awards and for granting incentive stock options, nonstatutory stock options, restricted stock, restricted stock units and appreciation rights. A maximum of 750,000 shares of our common stock are available for awards granted under the 2014 Incentive Plan and the plan expires ten years from the date of board approval. As of December 31, 2019, no nonstatutory stock options were outstanding under the 2014 Stock Plan.

Restricted Stock

We periodically issue restricted stock to employees and directors, pursuant to our 2014 Stock Plan. As of December 31, 2019, 529,933 restricted shares have been granted under the 2014 Stock Plan.

During 2019, 2018 and 2017, we granted 11,231, 9,264 and 12,728 restricted shares of common stock to outside directors under the 2014 Stock Plan. The grants are part of the compensation arrangement approved by the Compensation and Benefits Committee whereby the directors receive compensation in the form of both cash and restricted shares of common stock. These shares fully vest one year after the date of grant. The closing price of our stock is used to determine the fair value on the date of grant.

During 2019, 2018 and 2017, we granted 73,651, 66,733 and 77,387 restricted shares of common stock to senior management under our Long Term Incentive Plan, or LTIP, within the 2014 Stock Plan. The restricted shares granted under the LTIP consist of both time and performance-based awards. The awards were granted in accordance with performance levels set by the Compensation and Benefits Committee. Vesting for the time-based awards is 50 percent after two years and the remaining 50 percent at the end of the third year. The performance-based awards vest at the end of the three-year period. During the vesting period, if the recipient leaves S&T before the end of the vesting period, shares will be forfeited except in the case of retirement, disability or death where accelerated vesting provisions are defined within the awards agreement. The closing price of our stock is used to determine the fair value on the date of grant.

During 2019, 2018 and 2017, we recognized compensation expense of $2.4 million, $1.9 million and $3.0 million and realized a tax benefit of $0.5 million, $0.4 million and $1.1 million related to restricted stock grants.

The following table provides information about restricted stock granted under the 2014 Stock Plan for the years ended December 31:



	Restricted Stock	Weighted Average Grant Date Fair Value
Non-vested at December 31, 2017	220,568	$	30.19
Granted	75,997	42.43
Vested	63,323	29.19
Forfeited	26,847	30.18
Non-vested at December 31, 2018	206,395	$	30.70
Granted	84,882	38.67
Vested	76,014	30.75
Forfeited	33,228	32.50
Non-vested at December 31, 2019	182,035	$	34.06

As of December 31, 2019, there was $3.6 million of total unrecognized compensation cost related to restricted stock that will be recognized as compensation expense over a weighted average period of 1.77 years.

Dividend Reinvestment Plan

We also sponsor a Dividend Reinvestment and Stock Purchase Plan, or Dividend Plan, where shareholders may purchase shares of S&T common stock at the average fair value with reinvested dividends and voluntary cash contributions. The plan administrator and transfer agent may purchase shares directly from us from shares held in treasury or purchase shares in the open market to fulfill the Dividend Plan’s needs.