Stockholders' Equity

6 Months Ended

Jun. 30, 2019

Stockholders' Equity Note [Abstract]

Stockholder's Equity

Stock-Based Compensation

Restricted Stock Awards

Restricted stock awards granted to employees generally vest over a 3-year period. Stock grants made to non-employee WAL directors in 2019 became fully vested on July 1, 2019. The Company estimates the compensation expense for stock grants based upon the grant date fair value. Stock compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. The aggregate grant date fair value for the restricted stock awards granted during the three and six months ended June 30, 2019 was $0.4 million and $21.2 million, respectively. Stock compensation expense related to restricted stock awards and stock options granted to employees are included in Salaries and employee benefits in the Consolidated Income Statement. For restricted stock awards granted to WAL directors, the related stock compensation expense is included in Legal, professional, and directors' fees. For each of the three and six months ended June 30, 2019, the Company recognized $5.4 million and $9.7 million in stock-based compensation expense related to all restricted stock award grants, compared to $4.7 million and $9.0 million, respectively, for the three and six months ended June 30, 2018.

In addition, the Company previously granted shares of restricted stock to certain members of executive management that had both performance and service conditions that affect vesting. There were no such grants made during the three and six months ended June 30, 2019 and 2018, however expense is still being recognized for the grants made in 2017 as they also have a three-year vesting period. For the three and six months ended June 30, 2019, the Company recognized $0.5 million and $1.0 million, respectively, in stock-based compensation expense related to these performance-based restricted stock grants, compared to $0.6 million and $1.3 million, respectively, for the three and six months ended June 30, 2018.

Performance Stock Units

The Company grants members of its executive management performance stock units that do not vest unless the Company achieves a specified cumulative EPS target over a three-year performance period. The number of shares issued will vary based on the cumulative EPS target that is achieved. The Company estimates the cost of performance stock units based upon the grant date fair value and expected vesting percentage over the three-year performance period. For the three and six months ended June 30, 2019, the Company recognized $1.3 million and $3.0 million, respectively, in stock-based compensation expense related to these performance stock units, compared to $1.6 million and $3.3 million, respectively, for the three and six months ended June 30, 2018.

The three-year performance period for the 2016 grant ended on December 31, 2018, and the Company's cumulative EPS for the performance period exceeded the level required for a maximum award under the terms of the grant. As a result, executive management members were entitled to the maximum award of 202,776 shares, which was paid out in the first quarter of 2019.

Common Stock Repurchase

On December 12, 2018, the Company announced that it had adopted a common stock repurchase plan, pursuant to which the Company is authorized to repurchase up to $250.0 million of its shares of common stock. During the three and six months ended June 30, 2019, the Company repurchased 792,688 and 1,733,603 shares of its common stock, respectively, in total representing approximately 2% of the Company's outstanding shares, pursuant to the repurchase plan. The shares were repurchased at a weighted average price of $42.81 and $41.45, for a total payment of $34.0 million and $71.9 million during the three and six months ended June 30, 2019, respectively.

Treasury Shares

Treasury share purchases represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. During the three and six months ended June 30, 2019, the Company purchased treasury shares of 3,145 and 176,152, respectively, at a weighted average price of $47.16 and $45.69 per share, respectively. During the three and six months ended June 30, 2018, the Company purchased treasury shares of 2,085 and 182,952 at a weighted average price of $59.46 and $59.02 per share, respectively.