Stock-Based Compensation

9 Months Ended

Sep. 30, 2016

Note 10. Stock-Based Compensation

At September 30, 2016, the Company had 9,617,660 shares available for grants as options, restricted stock, or other forms of related rights under the New York Community Bancorp, Inc. 2012 Stock Incentive Plan (the “2012 Stock Incentive Plan”), which was approved by the Company’s shareholders at its Annual Meeting on June 7, 2012. Included in this amount were 1,030,673 shares that were transferred from the 2006 Stock Incentive Plan, which was approved by the Company’s shareholders at its Annual Meeting on June 7, 2006 and reapproved at its Annual Meeting on June 2, 2011. The Company granted 2,792,152 shares of restricted stock during the nine months ended September 30, 2016. The shares had an average fair value of $15.20 per share on the date of grant and a vesting period of five years. The nine-month amount includes 99,500 shares that were granted in the third quarter with an average fair value of $14.76 per share on the date of grant. Compensation and benefits expense related to the restricted stock grants is recognized on a straight-line basis over the vesting period, and totaled $24.6 million and $22.6 million, respectively, in the nine months ended September 30, 2016 and 2015. Included in the respective nine-month amounts were compensation and benefits expense related to the restricted stock grants of $8.2 million and $8.0 million, respectively, for the three months ended at those dates.

The following table provides a summary of activity with regard to restricted stock awards in the nine months ended September 30, 2016:


	For the Nine Months Ended September 30, 2016
	Number of Shares			Weighted Average Grant Date Fair Value
Unvested at beginning of year		6,362,117		$	15.44
Granted		2,792,152			15.20
Vested		(2,003,163	)		15.37
Canceled		(186,000	)		15.26

Unvested at end of period		6,965,106			15.37

As of September 30, 2016, unrecognized compensation cost relating to unvested restricted stock totaled $85.9 million. This amount will be recognized over a remaining weighted average period of 3.2 years.

The following table summarizes the changes that occurred during the nine months ended at September 30, 2016 with regard to the Company’s outstanding stock options:


	For the Nine Months Ended September 30, 2016
	Number of Stock Options			Weighted Average Exercise Price
Stock options outstanding, beginning of year		2,400		$	16.88
Exercised		—			—
Expired		(2,400	)		16.88

Stock options outstanding, end of period		—			—
Options exercisable, end of period		—			—

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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