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 May 2017, the Company repurchased 225,000 shares for a total of $3.9 million.

Stock-Based Compensation

The compensation cost related to stock options, restricted stock and restricted stock units in Company stock granted to employees and included in salaries and employee benefits was $1.2 million and $3.7 million, respectively, for the three and six months ended June 30, 2017, as compared to $1.6 million and $4.7 million, respectively, for the three and six months ended June 30, 2016. The total income tax benefit recognized related to stock-based compensation was $464,000 and $1.4 million, respectively, for the three and six months ended June 30, 2017, as compared to $638,000 and $1.8 million, respectively, for the three and six months ended June 30, 2016.

The following table summarizes information about stock option activity for the six months ended June 30, 2017:



(in thousands, except per share data)	Six Months Ended June 30, 2017
					Weighted-Avg
	Options		Weighted-Avg		Remaining Contractual	Aggregate
	Outstanding		Exercise Price		Term (Years)	Intrinsic Value
Balance, beginning of period	219		$	15.74
Granted/assumed	—		$	—
Exercised	(34	)	$	13.60
Forfeited/expired	(50	)	$	26.12
Balance, end of period	135		$	12.42	2.96	$	800
Options exercisable, end of period	131		$	12.43	2.88	$	774

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, 2017 was $29,000 and $141,000, respectively, as compared to the three and six months ended June 30, 2016 of $46,000 and $178,000, respectively.

During the three and six months ended June 30, 2017, the amount of cash received from the exercise of stock options was $233,000 and $269,000, respectively, as compared to the three and six months ended June 30, 2016 of $34,000 and $67,000, respectively. Total consideration was $233,000 and $463,000, respectively, for the three and six months ended June 30, 2017 as compared to the three and six months ended June 30, 2016 of $142,000 and $778,000, 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, 2017:



(in thousands, except per share data)	Six Months Ended June 30, 2017
	Restricted		Weighted
	Shares		Average Grant
	Outstanding		Date Fair Value
Balance, beginning of period	1,096		$	15.61
Granted	601		$	18.16
Vested/released	(286	)	$	16.21
Forfeited/expired	(78	)	$	16.67
Balance, end of period	1,333		$	16.57

The total fair value of restricted shares vested and released during the three and six months ended June 30, 2017 was $632,000 and $5.2 million, respectively, as compared to the three and six months ended June 30, 2016 of $6.9 million and $11.3 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, 2017:



(in thousands, except per share data)	Six Months Ended June 30, 2017
	Restricted		Weighted
	Stock Units		Average Grant
	Outstanding		Date Fair Value
Balance, beginning of period	78		$	18.58
Assumed	—		$	—
Released	(46	)	$	18.58
Forfeited/expired	(4	)	$	18.58
Balance, end of period	28		$	18.58

The total fair value of restricted stock units vested and released during the three and six months ended June 30, 2017 was $770,000 and $811,000, respectively, as compared to the three and six months ended June 30, 2016 of $1.8 million and $2.1 million, respectively.

As of June 30, 2017, there was $7,000 of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a weighted-average period of 0.47 years. As of June 30, 2017, there was $12.7 million of total unrecognized compensation cost related to nonvested restricted stock awards which is expected to be recognized over a weighted-average period of 1.80 years, assuming expected performance conditions are met for certain awards. As of June 30, 2017, there was $771,000 of total unrecognized compensation cost related to nonvested restricted stock units which is expected to be recognized over a weighted-average period of 0.65 years.

For the three and six months ended June 30, 2017, the Company received income tax benefits of $554,000 and $2.4 million, respectively, as compared to the three and six months ended June 30, 2016 of $3.4 million and $5.3 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. The tax deficiency or benefit is recorded as income tax expense or benefit in the period the shares are vested.