Note 10. Stock-Based Compensation

At June 30, 2013, the Company had 16,782,051 shares available for grants as options, restricted stock, or other forms of related rights under the New York Community Bancorp, Inc. 2012 Stock Incentive Plan (the “2012 Stock Incentive Plan”), which was approved by the Company’s shareholders at its Annual Meeting on June 7, 2012. Included in this amount were 1,030,673 shares that were transferred from the New York Community Bancorp, Inc. 2006 Stock Incentive Plan (the “2006 Stock Incentive Plan”), which was approved by the Company’s shareholders at its Annual Meeting on June 7, 2006 and reapproved at its Annual Meeting on June 2, 2011. Under the 2012 Stock Incentive Plan, the Company granted 2,280,022 shares of restricted stock in the six months ended June 30, 2013, with an average fair value of $13.61 per share on the date of grant and a vesting period of five years. The six-month amount includes 94,800 shares that were granted in the second quarter with an average fair value of $13.31 per share on the date of grant. Compensation and benefits expense related to the restricted stock grants is recognized on a straight-line basis over the vesting period, and totaled $11.0 million and $10.3 million, respectively, in the six months ended June 30, 2013 and 2012, including $5.4 million and $5.3 million, respectively, in the three months ended at those dates.

A summary of activity with regard to restricted stock awards in the six months ended June 30, 2013 is presented in the following table:


	For the Six Months Ended June 30, 2013
	Number of Shares		Weighted Average Grant Date Fair Value
Unvested at beginning of year		4,386,245		$	14.73
Granted		2,280,022			13.61
Vested		(1,043,805)			15.23
Cancelled		(255,220)			14.08

Unvested at end of period		5,367,242			14.18

As of June 30, 2013, unrecognized compensation cost relating to unvested restricted stock totaled $66.5 million. This amount will be recognized over a remaining weighted average period of 3.5 years.

In addition, the Company had the following stock option plans at June 30, 2013: the 1993 and 1997 New York Community Bancorp, Inc. Stock Option Plans; the 1993 Haven Bancorp, Inc. Stock Option Plan; the 1998 Richmond County Financial Corp. Stock Compensation Plan; the 2001 Roslyn Bancorp, Inc. Stock-based Incentive Plan; the 1998 Long Island Financial Corp. Stock Option Plan; and the 2003 and 2004 Synergy Financial Group Stock Option Plans (all eight plans collectively referred to as the “Stock Option Plans”). All stock options granted under the Stock Option Plans expire ten years from the date of grant.

The Company uses the modified prospective approach to recognize compensation costs related to share-based payments at fair value on the date of grant, and recognizes such costs in the financial statements over the vesting period during which the employee provides service in exchange for the award. As there were no unvested options at any time during the three months ended June 30, 2013 or the year ended December 31, 2012, the Company did not record any compensation and benefits expense relating to stock options during those periods.

To satisfy the exercise of options, the Company either issues new shares of common stock or uses common stock held in Treasury. In the event that Treasury stock is used, the difference between the average cost of Treasury shares and the exercise price is recorded as an adjustment to retained earnings or paid-in capital on the date of exercise. At June 30, 2013, there were 341,128 stock options outstanding. The number of shares available for future issuance under the Stock Option Plans was 11,453 at that date.

The status of the Stock Option Plans at June 30, 2013, and changes that occurred during the six months ended at that date, are summarized below:


	For the Six Months Ended June 30, 2013
	Number of Stock Options		Weighted Average Exercise Price
Stock options outstanding, beginning of year		2,641,344		$	16.68
Granted		--			--
Exercised		(8,511)			6.98
Expired/forfeited		(2,291,705)			16.26

Stock options outstanding, end of period		341,128			19.71
Options exercisable, end of period		341,128			19.71

The intrinsic value of stock options outstanding and exercisable at June 30, 2013 was $112,000. The intrinsic value of options exercised during the six months ended June 30, 2013 was $60,000. There were no stock options exercised during the six months ended June 30, 2012.