Stock-Based Compensation

9 Months Ended

Sep. 30, 2019

Stock-Based Compensation

Note 9. Stock-Based Compensation

At September 30, 2019, the Company had a total of 2,498,370 shares available for grants as restricted stock, options, or other forms of related rights under the New York Community Bancorp, Inc. 2012 Stock Incentive Plan, which was approved by the Company’s shareholders at its annual meeting of shareholders held on June 7, 2012. The Company granted 2,022,198 shares of restricted stock during the nine months ended September 30, 2019. The shares had an average fair value of $10.44 per share on the date of grant and a vesting period of five years. The nine-month amount includes 81,400 shares that were granted in the third quarter with an average fair value of $10.78 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 $23.2 million and $28.1 million, respectively, in the nine months ended September 30, 2019 and 2018, including $7.7 million and $9.4 million in the three months ended at those dates.

The following table provides a summary of activity with regard to restricted stock awards in the nine months ended September 30, 2019:

	Number of Shares			Weighted Average Grant Date Fair Value
Unvested at beginning of year		6,904,388		$	14.74
Granted		2,022,198			10.44
Vested		(2,189,635	)		15.19
Canceled		(197,470	)		12.88
Unvested at end of period		6,539,481			13.32

As of September 30, 2019, unrecognized compensation cost relating to unvested restricted stock totaled $71.6 million. This amount will be recognized over a remaining weighted average period of 2.9 years.

In addition, during the nine months ended September 30, 2019, the Company granted 418,674 Performance-Based Restricted Stock Units (“PSUs”). The PSUs have a performance period of January 1, 2019 to December 31, 2021 and vest on April 1, 2022, subject to adjustment or forfeiture, based upon the achievement by the Company of certain performance standards. Compensation and benefits expense related to PSUs is recognized using the fair value as of the date the units were approved, on a straight-line basis over the vesting period and totaled $411,000 and $689,000 for the three and nine months ended September 30, 2019, respectively. As of September 30, 2019, the Company believes it is probable that the performance conditions will be met.