OTHER EMPLOYEE BENEFITS

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

OTHER EMPLOYEE BENEFITS

OTHER EMPLOYEE BENEFITS

401(k) benefit plan

As of December 31, 2022, the Company maintained the 401(k) plans of both CBTX and Allegiance. Under both of these plans, participants may contribute a percentage of their compensation and both CBTX and Allegiance matched a portion of employee’s contributions. Matching contribution expense as of December 31, 2022, 2021 and 2020 was $2.2 million, $1.5 million and $1.4 million, respectively. The year 2022 includes contributions to the Allegiance and CBTX plans during the fourth quarter.

Profit sharing plan

The financial statements include an accrual for $1.7 million, $6.0 million and $3.5 million for a contribution to the Allegiance profit sharing plan as a profit sharing contribution for the years ended December 31, 2022, 2021 and 2020, respectively. This plan ended upon the date of the Merger.

Employee Stock Purchase Plan

Prior to the Merger, Allegiance offered its employees an opportunity to purchase shares of Allegiance’s common stock, pursuant to the terms of the ESPP Plan. The ESPP Plan was adopted by the Board of Directors to provide employees with an opportunity to purchase shares of Allegiance common stock in order to provide employees a more direct opportunity to participate in the Allegiance’s growth. Allegiance allowed employees to purchase shares at a 15% discount to market value and thus incurs stock based compensation expense for the fair value of the discount given. The Company recognized total stock based compensation expense of $111 thousand, $176 thousand and $142 thousand for the years ended December 31, 2022, 2021, and 2020 respectively for this plan. The ESPP was suspended at the effective date of the Merger.

Salary Continuation Agreement

In October 2017, CBTX entered into a salary continuation arrangement with its President and Chief Executive Officer that called for payments of $200,000 per year payable for a period of 10 years commencing at age 70. Compensation under this agreement accelerated under its terms as a result of the Merger and $1.5 million was paid as settlement of the liability.