Share-Based Payment Arrangements

6 Months Ended

Jun. 30, 2011

Share-Based Payment Arrangements

Share-Based Payment Arrangements

9. Share-Based Payment Arrangements

Stock Option Plans

Hancock maintains incentive compensation plans that incorporate share-based compensation. These plans have been approved by the Company's shareholders. Detailed descriptions of these plans were included in note 11 to the consolidated financial statements in the Company's annual report on Form 10-K for the year ended December 31, 2010. No options were granted in the first six months of 2011.

Whitney's outstanding stock options were converted and remain outstanding at the date of acquisition. These options will expire at the earlier of (1) their expiration date (which is generally ten years after the grant date), except for grants made in 2005, which will expire six months following the Merger or (2) a date following termination of employment, as set forth in the merger document. These options have no intrinsic value.

A summary of option activity under the plans for the three months ended June 30, 2011, and changes during the three months then ended is presented below:

Options	Number of Shares			Weighted- Average Exercise Price ($)		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2011		1,129,520		$	35.08		6.3
Whitney Bank options at acquisition date		775,261		$	62.64		1.8
Granted		—		$	—
Exercised		(5,194	)	$	22.07			$	—
Forfeited or expired		(66,400	)	$	43.78
Outstanding at June 30, 2011		1,833,187		$	46.45		3.5	$	1,197
Exercisable at June 30, 2011		1,415,195		$	49.48		2.9	$	1,197
Share options expected to vest		417,992		$	36.19		8.5	$	—

The total intrinsic value of options exercised during the three months ended June 30, 2011 and 2010 was $0.1 million and $0.6 million, respectively.

A summary of the status of the Company's nonvested shares as of June 30, 2011, and changes during the six months ended June 30, 2011, is presented below:

	Number of Shares			Weighted- Average Grant-Date Fair Value ($)
Nonvested at January 1, 2011		855,873		$	23.93
Granted		519,162		$	32.17
Vested		(84,654	)	$	26.00
Forfeited		(11,792	)	$	28.18
Nonvested at June 30 , 2011		1,278,589		$	27.10

As of June 30, 2011, there was $28.8 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a weighted-average period of 3.4 years. The total fair value of shares which vested during the six months ended June 30, 2011 and 2010 was $2.2 million and $1.6 million, respectively.