SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 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. Common stock repurchases are conducted in the open market. The amount and timing of all repurchase transactions are contingent upon market conditions, applicable legal requirements and other factors. This program may be modified, suspended or terminated by us at any time without notice.

Pursuant to our Board of Directors’ authorizations, the Company repurchased 285,981 shares of its common stock at a total cost of approximately $5.5 million, which is an average price per share of $19.22, during the nine months ended September 30, 2016.  As of September 30, 2016, the remaining availability for future repurchases of our common stock was $4.5 million.

Share-Based Compensation Expense

The following table provides certain information in connection with the Company’s share-based compensation arrangements for the three and nine months ended September 30, 2016 and 2015, respectively:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
	(in thousands)				(in thousands)
Restricted stock	$	525	$	936	$	3,158	$	2,277
Stock options		—		5		—		29
Total share-based compensation expense	$	525	$	941	$	3,158	$	2,306
Intrinsic value of options exercised	$	12,464	$	396	$	13,681	$	8,551
Fair value of restricted stock vested	$	10,685	$	24,444	$	39,607	$	36,216

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.

At September 30, 2016, there was approximately $6.3 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to restricted stock awards, which is currently expected to be recognized over a weighted average period of approximately 1.85 years.

Stock Option Awards

A summary of the Company’s stock option activity for the period from January 1, 2016 to September 30, 2016 is as follows:

	Number of Shares	Weighted Average Option Exercise Price
Outstanding at January 1, 2016	174,633	$	3.79
Granted	—	$	—
Exercised	(93,899)	$	3.85
Cancelled	—	$	—
Outstanding at September 30, 2016	80,734	$	3.71

Restricted Stock Awards

The Company recognizes share-based compensation expense for all restricted stock awards (“RSAs”) held by employees. The accounting charge is measured at the grant date as the fair value of FNHC common stock and expensed as non-cash compensation over the vesting term using the straight-line basis.

During the first quarter of 2016 and 2015, the Board of Directors granted 128,472 and 116,140 RSAs, respectively, vesting over three or five years, to the Company’s directors, executives and other key employees.

The following table summarizes RSA activity during the nine months ended September 30, 2016:

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2016	418,807	$	20.14
Granted	128,472	$	19.16
Vested	(194,916)	$	20.32
Cancelled	(540)	$	19.16
Outstanding at September 30, 2016	351,823	$	19.68

The weighted average grant date fair value is measured using 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 and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,
	2016						2015
	Before Tax		Income Tax		Net		Before Tax		Income Tax		Net
	(in thousands)
Accumulated other comprehensive income,
beginning  of period	$	15,201	$	(5,596)	$	9,605	$	10,407	$	(4,048)	$	6,359
Other comprehensive income before reclassifications		690		(186)		504		(746)		284		(462)
Reclassification adjustment for realized gains included
in net income		(1,464)		338		(1,126)		(1,925)		799		(1,126)
		(774)		152		(622)		(2,671)		1,083		(1,588)
Accumulated other comprehensive income, end of period	$	14,427	$	(5,444)	$	8,983	$	7,736	$	(2,965)	$	4,771

	Nine Months Ended September 30,
	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		11,296		(4,117)		7,179		1,601		(805)		796
Reclassification adjustment for realized gains included
in net income		(2,980)		920		(2,060)		(6,282)		2,539		(3,743)
		8,316		(3,197)		5,119		(4,681)		1,734		(2,947)
Accumulated other comprehensive income, end of period	$	14,427	$	(5,444)	$	8,983	$	7,736	$	(2,965)	$	4,771