SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 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. In November 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 1, 2017. Common stock repurchases are conducted in the open market or under Rule 10b5-1 trading plans from time to time in its discretion, based on ongoing assessments of the Company’s capital needs, the market price of its common stock and general market conditions. 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 624,818 shares of its common stock at a total cost of $11.3 million, which is an average price per share of $19.23, during the year ended December 31, 2016.

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,
	2016		2015		2014
	(in thousands)
Restricted stock	$	3,831	$	2,930	$	1,525
Stock options		—		33		135
Total share-based compensation expense	$	3,831	$	2,963	$	1,660
Intrinsic value of options exercised	$	13,732	$	1,124	$	5,172
Fair value of restricted stock vested	$	41,495	$	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 Market.

The unamortized share-based compensation expense is $5.6 million for the year ended December 31, 2016, which will be recognized over the remaining weighted average vesting period of approximately 1.76 years.

Stock Option Awards

A summary of the Company’s stock option activity for the period from January 1, 2014 to December 31, 2016 is as follows:

	Number of Shares	Weighted Average Option Exercise Price
Outstanding at January 1, 2014	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
Granted	—	$	—
Exercised	(94,249)	$	3.85
Cancelled	(900)	$	4.40
Outstanding at December 31, 2016	79,484	$	3.70

A following table summarizes information about stock options outstanding and exercisable in a select price range as of December 31, 2016:

	Options Outstanding and Exercisable
		Weighted Average
		Remaining
	Shares Outstanding	Contractual Life	Weighted Average	Aggregate
Range of Exercise Price	and Exercisable	(years)	Exercise Price	Intrinsic Value
$2.45 - $4.40	79,484	4.87	3.70	1,191,218

Restricted Stock

During the years ended December 31, 2016,  2015 and 2014, 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, 2014 to December 31, 2016 is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2014	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
Granted	128,472	$	19.16
Vested	(204,916)	$	20.25
Cancelled	(5,160)	$	20.58
Outstanding at December 31, 2016	337,203	$	19.69

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 years ended December 31, 2016 and 2015:

	Year Ended December 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	$	12,419	$	(4,701)	$	7,718
Other comprehensive income before reclassifications		1,774		(470)		1,305		(324)		86		(238)
Reclassification adjustment for realized gains included
in net (loss) income		(4,560)		1,515		(3,045)		(5,984)		2,368		(3,616)
		(2,786)		1,046		(1,740)		(6,308)		2,454		(3,854)
Accumulated other comprehensive income, end of period	$	3,323	$	(1,199)	$	2,124	$	6,111	$	(2,247)	$	3,864