Share-Based Payment Arrangements

3 Months Ended

Mar. 31, 2015

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

Share-Based Payment Arrangements

9. 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 12 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

A summary of option activity for the three months ended March 31, 2015 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, 2015		933,750		$	37.03
Exercised		—			—
Cancelled/Forfeited		(11,473	)		36.79
Expired		(75,480	)		31.20
Outstanding at March 31, 2015		846,797		$	37.55		4.4	$	15
Exercisable at March 31, 2015		691,344		$	39.20		3.8	$	6

The total intrinsic value of options exercised during the three months ended March 31, 2015 and 2014 was $0.5 million and $0.2 million, respectively.

A summary of the status of the Company’s nonvested restricted and performance shares as of March 31, 2015 and changes during the three months ended March 31, 2015, is presented below. These restricted and performance shares are subject to service requirements.

	Number of Shares			Weighted Average Grant Date Fair Value
Nonvested at January 1, 2015		2,040,299		$	32.27
Granted		79,410			26.70
Vested		(19,136	)		36.15
Forfeited		(63,796	)		33.51
Nonvested at March 31, 2015		2,036,777		$	31.98

As of March 31, 2015, there were $40.1 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 3.5 years. The total fair value of shares which vested during the three months ended March 31, 2015 and 2014 was $0.9 million and $0.8 million, respectively.

During the three months ended March 31, 2015, the Company granted 59,312 performance shares with a grant date fair value of $25.77 per share to key members of executive and senior management. The number of 2015 performance shares that ultimately vest at the end of the three-year required service period, if any, will be based on the relative rank of Hancock’s three-year total shareholder return (“TSR”) among the TSRs of a peer group of fifty regional banks. The maximum number of performance shares that could vest is 200% of the target award. The fair value of the performance awards at the grant date was determined using a Monte Carlo simulation method. Compensation expense for these performance shares will be recognized on a straight-line basis over the service period.