Stock-Based Compensation

3 Months Ended

Mar. 31, 2020

Note 9. Stock-Based Compensation

At March 31, 2020, the Company had a total of 172,685 shares available for grants as restricted stock, options, or other forms of related rights under the 2012 Stock Incentive Plan, which was approved by the Company’s shareholders at its Annual Meeting on June 7, 2012. The Company granted 2,387,645 shares of restricted stock, with an average fair value of $11.64 per share on the date of grant, during the three months ended March 31, 2020. During the three months ended March 31, 2019, the Company granted 1,723,240 shares of restricted stock, with an average fair value of $10.32 per share.

The shares of restricted stock that were granted during the three months ended March 31, 2020 and 2019, vest over a

three or five year

period. Compensation and benefits expense related to the restricted stock grants is recognized on a straight-line basis over the vesting period and totaled $7.8 million and $7.9 million, respectively, for the three months ended March 31, 2020 and 2019.

The following table provides a summary of activity with regard to restricted stock awards in the three months ended March 31, 2020:


	Number of Shares			Weighted Average Grant Date Fair Value
Unvested at beginning of year		6,516,101		$	13.31
Granted		2,387,645			11.64
Vested		(1,964,371	)		14.14
Canceled		(52,840	)		12.30

Unvested at end of period		6,886,535			12.51

As of March 31, 2020, unrecognized compensation cost relating to unvested restricted stock totaled $82.2 million. This amount will be recognized over a remaining weighted average period of 3.3 years.

In addition, the Company has 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 $407,000 for the three months ended March 31, 2020. As of March 31, 2020, the Company believes it is probable that the performance conditions will be met.

During the three months ended March 31, 2020, the Company began to match employee 401K contributions. Such expense totaled $1.6 million.