SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2016

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

(10) SHAREHOLDERS’ EQUITY

Common Stock Repurchases

In March 2016, our Board of Directors authorized a program to repurchase shares of common stock of FNHC, at such times and at prices as management determines advisable, up to an aggregate of $10.0 million through March 31, 2017.

Pursuant to our Board of Directors authorizations, the Company repurchased 52,600 shares of its common stock at a total cost of $1.1 million, which is an average price per share of $20.44, during the three months ended March 31, 2016.

Share-based Compensation Expense

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

	Three months ended March 31,
	2016		2015
	(in thousands)
Restricted stock	$	680	$	728
Stock options		-		24
Total share-based compensation expense	$	680	$	752
Excess tax benefits from stock-based awards	$	246	$	530
Intrinsic value of options exercised	$	193	$	2,346
Fair value of restricted stock vested	$	12,358	$	17,387

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 Market.

The unamortized share-based compensation expense is $8.7 million as of March 31, 2016, which will be recognized over the remaining weighted average vesting period of approximately 3.23 years.

Stock Option Awards

A summary of the Company’s stock option activity for the period from January 1, 2016 to March 31, 2016 is as follows:

	Number of Shares			Weighted Average Option Exercise Price
Outstanding at January 1, 2016		174,633		$	3.79
Granted		-		$	-
Exercised		(1,100	)	$	4.20
Cancelled		-		$	-
Outstanding at March 31, 2016		173,533		$	3.78

Restricted Stock

On March 10, 2016, the Company’s Board of Directors granted 128,472 restricted shares to the Company’s Directors, Executives and other key employees.  The restricted shares vest over three or five years.

A summary of the Company’s restricted stock activity for the period from January 1, 2016 to March 31, 2016 is as follows:

	Number of Shares			Weighted Average  Grant Date Fair Value
Outstanding at January 1, 2016		418,807		$	20.14
Granted		128,472		$	19.16
Vested		(79,381	)	$	15.57
Cancelled		-		$	-
Outstanding at March 31, 2016		467,898		$	20.64

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 Market.

Accumulated Other Comprehensive Income

The following table presents a reconciliation of the changes in accumulated other comprehensive income during the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016									2015
	Before Tax			Income Tax			Net			Before Tax			Income Tax			Net
	(in thousands)
Accumulated other comprehensive income, beginning of period	$	6,111		$	(2,247	)	$	3,864		$	12,417		$	(4,699	)	$	7,718
Other comprehensive income before reclassifications		5,570			(2,103	)		3,467			4,717			(1,806	)		2,911
Reclassification adjustment for realized gains included in net income		(1,486	)		559			(927	)		(2,752	)		1,048			(1,704	)
		4,084			(1,544	)		2,540			1,965			(758	)		1,207
Accumulated other comprehensive income, end of period	$	10,195		$	(3,791	)	$	6,404		$	14,382		$	(5,457	)	$	8,925