SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2015

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

(10) SHAREHOLDERS’ EQUITY

Stock Compensation Plan

In April 2012, our Board of Directors adopted, and in September 2012 our shareholders approved, the Company’s 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan permits the issuance of up to 1,000,000 shares of our common stock, subject to adjustment as provided for in the 2012 Plan, in connection with the grant of a variety of equity incentive awards, such as stock options and restricted stocks. Officers, directors, executive management and all other employees of the Company and its subsidiaries are eligible to participate in the 2012 Plan. Awards may be granted singly, in combination, or in tandem. The 2012 Plan will expire on April 5, 2022.

Share-based Compensation Expense

The following table provides certain information in connection with the Company’s share-based compensation arrangements as follows:

	Year Ended December 31,
	2015		2014		2013
	(in thousands)
Restricted stock	$	2,930	$	1,525	$	120
Stock options		33		135		172
Total share-based compensation expense	$	2,963	$	1,660	$	292
Excess tax benefits from share-based awards	$	1,564	$	480	$	169
Intrinsic value of options exercised	$	1,124	$	5,172	$	583
Fair value of restricted stock vested	$	2,303	$	549	$	-

The intrinsic value of options exercised represents the difference between the stock option exercise price and the weighted average closing stock price of FNHC common stock on the exercise dates, as reported on The NASDAQ Global Select Market.

The unamortized share-based compensation expense is $6.9 million for the year ended December 31, 2015, which will be recognized over the remaining weighted average vesting period of approximately 3.21 years.

Stock Option Awards

A summary of the Company’s stock option activity for the period from January 1, 2013 to December 31, 2015 is as follows:

	Number of Shares			Weighted Average Option Exercise Price
Outstanding at January 1, 2013		781,097		$	5.93
Granted		-		$	-
Exercised		(166,077	)	$	7.15
Cancelled		(88,499	)	$	11.77
Outstanding at December 31, 2013		526,521		$	4.56
Granted		-		$	-
Exercised		(302,735	)	$	5.13
Cancelled		(4,501	)	$	3.49
Outstanding at December 31, 2014		219,285		$	3.79
Granted		-		$	-
Exercised		(44,652	)	$	3.81
Cancelled		-		$	-
Outstanding at December 31, 2015		174,633		$	3.79

A following table summarizes information about stock options outstanding and exercisable in a select price range as of December 31, 2015:

	Options Outstanding and Exercisable
Range of Exercise Price	Shares Outstanding and Exercisable		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
$2.45 - $4.40		174,633		5.60	$	3.79	$	4,500,825

Restricted Stock

During the years ended December 31, 2015, 2014 and 2013, the restricted stock awards issued have been granted to executives, directors and other key employees. The shares granted typically vest in equal portions over three or five years. A summary of the Company’s restricted stock activity for the period from January 1, 2013 to December 31, 2015 is as follows:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2013		-		$	-
Granted		250,000		$	8.23
Vested		-		$	-
Cancelled		(500	)	$	5.54
Outstanding at December 31, 2013		249,500		$	8.24
Granted		268,648		$	22.50
Vested		(68,988	)	$	7.96
Cancelled		(1,359	)	$	8.29
Outstanding at December 31, 2014		447,801		$	16.84
Granted		116,140		$	27.53
Vested		(145,134	)	$	15.87
Cancelled		-		$	-
Outstanding at December 31, 2015		418,807		$	20.14

The weighted average grant date fair value is measured at the closing price of FNHC common stock on the grant date, as reported on the NASDAQ Global Select Market.