SHARE BASED PAYMENTS

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE BASED PAYMENTS

NOTE 12— SHARE-BASED PAYMENTS

(a) Amended and Restated 2009 Stock Incentive Plan

During the six months ended June 30, 2017, the Company granted restricted stock units representing 467,025 shares of common stock with a total fair value of $7,416 to certain employees of the Company under the Company’s Amended and Restated 2009 Stock Incentive Plan (the “Plan”). During the year ended December 31, 2016, the Company granted restricted stock units representing 544,605 shares of common stock with a total fair value of $5,301 to certain employees and directors of the Company under the Plan. Share-based compensation expense for such restricted stock units was $1,305 and $2,212 for the three and six months ended June 30, 2017, respectively. Share-based compensation expense for such restricted stock units was $560 and $997 for the three and six months ended June 30, 2016, respectively. 

The restricted stock units generally vest over a period of one to three years based on continued service. In determining the fair value of restricted stock units on the grant date, the fair value is adjusted for (a) estimated forfeitures, (b) expected dividends based on historical patterns and the Company’s anticipated dividend payments over the expected holding period and (c) the risk-free interest rate based on U.S. Treasuries for a maturity matching the expected holding period. As of June 30, 2017, the expected remaining unrecognized share-based compensation expense of $10,365 will be expensed over a weighted average period of 2.4 years.

A summary of equity incentive award activity under the Plan for the six months ended June 30, 2017 was as follows:

	Shares			Weighted Average Fair Value
Nonvested at December 31, 2016		680,135		$	9.74
Granted		467,025			15.88
Vested		(172,431	)		10.50
Forfeited		(29,724	)		10.49
Nonvested at June 30, 2017		945,005		$	12.61

The per-share weighted average grant-date fair value of restricted stock units was $15.88 during the six months ended June 30, 2017. There were 172,431 restricted stock units with a fair value of $1,810 that vested during the six months ended June 30, 2017 under the Plan.

(b) Amended and Restated FBR & Co. 2006 Long-Term Stock Incentive Plan

In connection with the acquisition of FBR on June 1, 2017, the equity awards previously granted or available for issuance under the FBR & Co. 2006 Long-Term Stock Incentive Plan (the “FBR Stock Plan”) may be issued under the Plan. On June 13, 2017, the Company granted restricted stock units representing 475,819 shares of common stock with a total grant date fair value of $7,375. Share-based compensation expense was $120 for the three and six months ended June 30, 2017 in connection with the June 13, 2017 restricted stock award. In connection with the restructuring discussed in Note 2(i), the Company recorded share-based compensation expense of $1,424 related to the accelerated vesting of restricted stock awards. Of the $1,424, $884 related to former corporate executives of FBR and $540 related to employees in the Capital Markets segment. As of June 30, 2017, the expected remaining unrecognized share-based compensation expense of $9,965 will be expensed over a weighted average period of 2.6 years.

A summary of equity incentive award activity for the period from June 1, 2017, the date of the acquisition of FBR, through June 30, 2017 was as follows:

	Shares			Weighted Average Fair Value
Nonvested at June 1, 2017, acquisition date of FBR resulting from the exchange of previously existing FBR awards		530,661		$	14.70
Granted		475,819			15.50
Vested		(22,136	)		14.70
Forfeited		(10,952	)		14.70
Nonvested at June 30, 2017		973,392		$	15.09