Stock-Based Compensation

12 Months Ended

Dec. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

NOTE 13. STOCK-BASED COMPENSATION

As of December 31, 2016, there were 2,000,000 available restricted shares in the Second Amended and Restated 2005 Stock Incentive Plan. As of December 31, 2016, 1,531,058 of such awards were issued leaving 468,942 awards available to be issued in subsequent periods.

Stock-based compensation granted under our Company’s stock plans is expensed in tranches over the vesting period. Options and non-performance based grants generally vest equally over a three or four year period and the options have a maximum term of ten years. Our Company’s performance based share grants generally consist of three types of awards. The performance units issued in 2016, 2015 and 2014 will cliff vest on the third anniversary of the date of the grant in an amount as determined by the rate of cumulative annual growth in tangible book value for the three years immediately prior to the vesting date, with actual shares that vest ranging between 150% to 50% of that portion of the original award.   

Unvested restricted stock units and performance units outstanding as of December 31, 2016, 2015 and 2014, and changes during the years ended on those dates, are presented in the following table:

	December 31,
	2016			2015			2014
Beginning balance		1,393,030			1,437,784			1,253,624
Granted - Performance		404,946			370,100			457,214
Granted - Non Performance		84,000			64,316			119,046
Total Granted		488,946			434,416			576,260
Vested - Performance		(285,208	)		(136,160	)		(186,906	)
Vested - Non Performance		(55,000	)		(271,200	)		(180,526	)
Total Vested		(340,208	)		(407,360	)		(367,432	)
Forfeited		(167,604	)		(71,810	)		(24,668	)
Ending balance		1,374,164			1,393,030			1,437,784

As of December 31, 2016 and 2015, the total unrecognized compensation expense, net of estimated forfeitures, related to unvested stock units was $22.3 million and $17.3 million, respectively, which is expected to be recognized as expense over weighted average periods of 1.8 years and 2.0 years, respectively.  The aggregate fair value of all unvested restricted stock units as of December 31, 2016 and 2015 was $87.2 million and $55.2 million, respectively.  The aggregate fair value will not change after the stock split, as shares will be doubled and the price per share will be halved.  

Stock options outstanding as of December 31, 2016, 2015 and 2014 are as follows:

	December 31,
	2016 (1)				2015					2014
			Average					Average					Average
	# of Shares		Exercise Price		# of Shares			Exercise Price		# of Shares			Exercise Price
Beginning balance		—	$	—		1,500		$	36.03		6,750		$	30.65
Granted		—		—		—			—		—			—
Exercised		—	$	—		(1,500	)	$	36.03		(5,250	)	$	29.11
Expired or forfeited		—		—		—			—		—			—
Ending balance		—	$	—		—		$	—		1,500		$	36.03
Number of options exercisable		—	$	—		—		$	—		1,500		$	36.03

(1) – Our company has not recently issued stock options and does not currently have any options outstanding.  

We offer an Employee Stock Purchase Plan (the “ESPP”) to all of our eligible employees.  Employees are offered the opportunity to purchase our Company’s Common stock at 90% of fair market value at the lower of the price at the beginning or the end of each six month offering period.  Each employee can invest up to 10% of their base compensation subject to the lesser of 1,000 common stock shares or total market value of $25,000.  There were 41,224 shares purchased in 2016 from funds withheld during the July 1, 2015 to December 31, 2015 and January 1, 2016 to June 30, 2016 offering periods.  There were 41,714 shares purchased in 2015 in the aggregate from funds withheld during the offering periods of July 1, 2014 to December 31, 2014 and January 1, 2015 to June 30, 2015. We expense both the value of the 10% discount and the “look-back” option, which provides for the more favorable price at either the beginning or end of the offering period.