Shareholders' Equity and Stock Compensation

The Company has a share repurchase plan, which allows the Company to repurchase shares from time to time subject to a maximum number of shares over the life of the plan. In February 2016, the Company repurchased 235,000 shares for a total of $3.5 million. In July 2016, the Company repurchased an additional 325,000 shares.

Stock-Based Compensation

The compensation cost related to stock options, restricted stock and restricted stock units granted to employees and included in salaries and employee benefits was $1.6 million and $4.7 million for the three and six months ended June 30, 2016, as compared to $4.4 million and $7.6 million for the three and six months ended June 30, 2015. The total income tax benefit recognized related to stock-based compensation was $638,000 and $1.8 million for the three and six months ended June 30, 2016, as compared to $1.6 million and $2.8 million for the three and six months ended June 30, 2015.

The following table summarizes information about stock option activity for the six months ended June 30, 2016:



(in thousands, except per share data)	Six Months Ended June 30, 2016
					Weighted-Avg
	Options		Weighted-Avg		Remaining Contractual	Aggregate
	Outstanding		Exercise Price		Term (Years)	Intrinsic Value
Balance, beginning of period	472		$	14.58
Granted	—		$	—
Exercised	(60	)	$	12.86
Forfeited/expired	(34	)	$	24.19
Balance, end of period	378		$	13.99	3.14	$	1,093
Options exercisable, end of period	366		$	14.06	3.03	$	1,051

The total intrinsic value (which is the amount by which the stock price exceeded the exercise price on the date of exercise) of options exercised during the three and six months ended June 30, 2016 was $46,000 and $178,000, respectively, as compared to the three and six months ended June 30, 2015 of $320,000 and $465,000, respectively.

During the three and six months ended June 30, 2016, the amount of cash received from the exercise of stock options was $34,000 and $67,000, respectively, as compared to the three and six months ended June 30, 2015 of $105,000 and $194,000, respectively. Total consideration was $142,000 and $777,000 for the three and six months ended June 30, 2016, respectively, as compared to the three and six months ended June 30, 2015 of $621,000 and $760,000, respectively.

The Company grants restricted stock periodically for the benefit of employees and directors. Restricted shares generally vest over a three year period, subject to time or time plus performance vesting conditions. The following table summarizes information about nonvested restricted share activity for the six months ended June 30, 2016:



(in thousands, except per share data)	Six Months Ended June 30, 2016
	Restricted		Weighted
	Shares		Average Grant
	Outstanding		Date Fair Value
Balance, beginning of period	1,376		$	16.18
Granted	574		$	14.38
Released	(724	)	$	15.85
Forfeited	(97	)	$	14.56
Balance, end of period	1,129		$	15.62

The total fair value of restricted shares vested and released during the three and six months ended June 30, 2016 was $6.9 million and $11.3 million, respectively, as compared to the three and six months ended June 30, 2015 of $1.7 million and $6.8 million, respectively.

The Company granted restricted stock units in connection with the acquisition of Sterling as replacement awards. Restricted stock unit grants may be subject to performance-based vesting as well as other approved vesting conditions. The total number of restricted stock units granted represents the maximum number of restricted stock units eligible to vest based upon the performance and service conditions set forth in the grant agreements.

The following table summarizes information about nonvested restricted stock unit activity for the six months ended June 30, 2016:



(in thousands, except per share data)	Six Months Ended June 30, 2016
	Restricted		Weighted
	Stock Units		Average Grant
	Outstanding		Date Fair Value
Balance, beginning of period	263		$	18.58
Granted	—		$	—
Released	(132	)	$	18.58
Forfeited	(43	)	$	18.58
Balance, end of period	88		$	18.58

The total fair value of restricted stock units vested and released during the three and six months ended June 30, 2016 was $1.8 million and $2.1 million, respectively, as compared to the three and six months ended June 30, 2015 of $2.5 million and $3.9 million, respectively.

As of June 30, 2016, there was $73,000 of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a weighted-average period of 1.26 years. As of June 30, 2016, there was $10.6 million of total unrecognized compensation cost related to nonvested restricted stock awards which is expected to be recognized over a weighted-average period of 1.89 years. As of June 30, 2016, there was $2.5 million of total unrecognized compensation cost related to nonvested restricted stock units which is expected to be recognized over a weighted-average period of 1.42 years, assuming expected performance conditions are met.

For the three and six months ended June 30, 2016, the Company received income tax benefits of $3.4 million and $5.3 million, respectively, as compared to the three and six months ended June 30, 2015 of $1.7 million and $4.4 million, respectively, related to the exercise of non-qualified employee stock options, disqualifying dispositions on the exercise of incentive stock options, the vesting of restricted shares and the vesting of restricted stock units. In the six months ended June 30, 2016, the Company did not record a tax deficiency or benefit as a component of equity due to the application of ASU 2016-09. For the six months ended June 30, 2015, the Company had $529,000 of net excess tax benefit (tax benefit resulting from tax deductions greater than the compensation cost recognized). The tax deficiency or benefit is now recorded as income tax expense or benefit in the period the shares are vested.