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Share-Based Payment Arrangements
 9 Months Ended
Sep. 30, 2016
Share-Based Payment Arrangements [Abstract]  
Share-Based Payment Arrangements

12.  Share-Based Payment Arrangements

Hancock maintains incentive compensation plans that provide for awards of share-based compensation to employees and directors.  These plans have been approved by the Company’s shareholders.  Detailed descriptions of these plans were included in Note 16 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. 

A summary of option activity for the nine months ended September 30, 2016 is presented below.



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Weighted

 

 

 



 

 

 

 

 

 

Average

 

 

 



 

 

 

Weighted

 

Remaining

 

 

 



 

 

 

Average

 

Contractual

 

Aggregate



 

Number of

 

Exercise

 

Term

 

Intrinsic

Options

 

Shares

 

Price

 

(Years)

 

Value ($000)

Outstanding at January 1, 2016

 

 745,806 

 

$

 37.55 

 

 

 

 

 

Exercised/Released

 

 (1,660)

 

 

 29.73 

 

 

 

 

 

Cancelled/Forfeited

 

 (66,345)

 

 

 35.25 

 

 

 

 

 

Expired

 

 (150,847)

 

 

 46.06 

 

 

 

 

 

Outstanding at September 30, 2016

 

 526,954 

 

$

 35.42 

 

 3.81 

 

$

 582 

Exercisable at September 30, 2016

 

 483,199 

 

$

 35.93 

 

 3.67 

 

$

 469 



The total intrinsic value of options exercised for the nine months ended September 30, 2016 was minimal, compared to $0.2 million for the nine months ended September 30, 2015.

The restricted and performance shares in the table below are subject to service requirements. A summary of the status of the Company’s nonvested restricted and performance shares as of September 30, 2016 and changes during the nine months ended September 30, 2016, is presented in the following table.



 

 

 

 

 



 

 

 

 

 



 

 

 

 

Weighted



 

 

 

 

Average



 

Number of

 

 

Grant Date



 

Shares

 

 

Fair Value

Nonvested at January 1, 2016

 

 2,196,145 

 

$

 30.97 

Granted

 

 106,403 

 

 

 25.15 

Vested

 

 (71,184)

 

 

 30.98 

Forfeited

 

 (207,932)

 

 

 30.92 

Nonvested at September 30, 2016

 

 2,023,432 

 

$

 30.63 



As of September 30, 2016,  there were $33.6 million of total unrecognized compensation expense related to nonvested restricted and performance shares expected to vest.  This compensation is expected to be recognized in expense over a weighted average period of 3.1 years.  The total fair value of shares which vested during the nine months ended September 30, 2016 and 2015 was $2.2 million and $7.6 million, respectively.    

During the nine months ended September 30, 2016, the Company granted 35,587 performance shares subject to a total shareholder return (“TSR”) performance metric with a grant date fair value of $24.42 per share and 35,587 performance shares subject to a core earnings per share performance metric with a grant date fair value of $22.58 per share to key members of executive management. The number of performance shares subject to TSR that ultimately vest at the end of the three-year performance period, if any, will be based on the relative rank of the Company’s three-year TSR among the TSRs of a peer group of 44 regional banks. The fair value of the performance shares subject to TSR at the grant date was determined using a Monte Carlo simulation method.  The number of performance shares subject to core earnings per share that ultimately vest will be based on the Company’s attainment of certain core earnings per share goals over the two-year performance period.  The maximum number of performance shares that could vest is 200% of the target award.  Compensation expense for these performance shares is recognized on a straight-line basis over the three-year service period.