Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

Note 10. Stock-Based Compensation

At September 30, 2014, the Company had a total of 14,460,853 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. The Company granted 2,374,998 shares of restricted stock in the nine months ended September 30, 2014, with an average fair value of $16.80 per share on the date of grant and a vesting period of five years. The nine-month amount includes 45,500 shares that were granted in the third quarter with an average fair value of $15.71 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 $20.7 million and $16.6 million, respectively, in the nine months ended September 30, 2014 and 2013, including $6.8 million and $5.7 million, respectively, in the three months ended at those dates.

A summary of activity with regard to restricted stock awards in the nine months ended September 30, 2014 is presented in the following table:

	For the Nine Months Ended
	September 30, 2014
				Weighted Average
	Number of Shares			Grant Date Fair Value
Unvested at beginning of year		5,043,642		$	14.27
Granted		2,374,998			16.80
Vested		(1,327,531	)		14.55
Cancelled		(102,300	)		15.23
Unvested at end of period		5,988,809			15.19

As of September 30, 2014, unrecognized compensation cost relating to unvested restricted stock totaled $72.9 million. This amount will be recognized over a remaining weighted average period of 3.2 years.

In addition, the Company had the following stock option plans at September 30, 2014: the 1998 Richmond County Financial Corp. Stock Compensation Plan; the 1998 Long Island Financial Corp. Stock Option Plan; and the 2004 Synergy Financial Group Stock Option Plans (all 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 nine months ended September 30, 2014, or the year ended December 31, 2013, 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 September 30, 2014, there were 58,560 stock options outstanding. There were no shares available for future issuance under the Stock Option Plans at that date.

The status of the Stock Option Plans at September 30, 2014, and changes that occurred during the nine months ended at that date, are summarized below:

	For the Nine Months Ended
	September 30, 2014
	Number of			Weighted Average
	Stock Options			Exercise Price
Stock options outstanding, beginning of year		126,821		$	15.21
Granted		--			--
Exercised		(42,214	)		12.69
Expired/forfeited		(26,047	)		12.94
Stock options outstanding, end of period		58,560			18.04
Options exercisable, end of period		58,560			18.04

The intrinsic value of stock options outstanding and exercisable at September 30, 2014 was $0. The intrinsic value of options exercised during the nine months ended September 30, 2014 and 2013 was $132,000 and $106,000, respectively.