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Stock-Related Benefit Plans
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Related Benefit Plans

NOTE 18: STOCK-RELATED BENEFIT PLANS

Stock Based Compensation

At December 31, 2022, the Company had a total of 9,799,865 shares available for grants as restricted stock, options, or other forms of related rights under the 2020 Incentive Plan, which includes the remaining shares available, converted at the merger conversion factor from the legacy Flagstar Bancorp, Inc. 2016 Stock Plan. The Company granted 3,710,689 shares of restricted stock, with an average fair value of $11.23 per share on the date of grant, during the twelve months ended December 31, 2022.

During the years ended December 31, 2021 and 2020, the Company granted 3,131,949 shares and 2,421,345 shares, respectively, of restricted stock, which had average fair values of $11.20 and $11.61 per share on the respective grant dates. Compensation and benefits expense related to the restricted stock grants is recognized on a straight-line basis over the vesting period and totaled $25 million, $27 million, and $28 million, respectively, for the years ended December 31, 2022, 2021, and 2020.

The following table provides a summary of activity with regard to restricted stock awards:

 

 

 

For the Year Ended
December 31, 2022

 

 

 

Number of Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Unvested at beginning of year

 

 

6,950,335

 

 

$

11.68

 

Granted

 

 

3,710,689

 

 

 

11.23

 

Assumed in business acquisition (1)

 

 

1,904,025

 

 

 

9.35

 

Vested

 

 

(2,374,209

)

 

 

12.21

 

Forfeited

 

 

(614,238

)

 

 

11.56

 

Unvested at end of year

 

 

9,576,602

 

 

 

10.92

 

 

 

 

 

 

 

 

(1) Weighted-average per share represents the fair value per share on the acquisition date.

 

 

 

 

 

 

 

As of December 31, 2022, unrecognized compensation cost relating to unvested restricted stock totaled $74 million. This amount will be recognized over a remaining weighted average period of 2.5 years.

The following table provides a summary of activity with regard to Performance-Based Restricted Stock Units ("PSUs") in the twelve months ended December 31, 2022:

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

 

Performance
Period

 

Expected
Vesting
Date

Outstanding at beginning of year

 

 

834,612

 

 

$

11.44

 

 

 

 

 

Granted

 

 

473,211

 

 

 

10.09

 

 

 

 

 

Released

 

 

(176,090

)

 

 

11.42

 

 

 

 

 

Forfeited

 

 

(336,749

)

 

 

11.43

 

 

 

 

 

Outstanding at end of period

 

 

794,984

 

 

 

11.43

 

 

January 1, 2022 - December 31, 2024

 

March 31, 2023 - 2025