Stock Incentive Plans

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Incentive Plans

Stock Incentive Plans

During the three months ended March 31, 2015, 26,232 shares of restricted common stock were granted to directors under the Astoria Financial Corporation 2007 Non-Employee Directors Stock Plan, as amended, of which 21,860 remain outstanding at March 31, 2015 and vest 100% in February 2018, although awards immediately vest upon death, disability, mandatory retirement, involuntary termination or a change in control, as such terms are defined in the plan.

No stock-based compensation awards were made to our officers or employees during the three months ended March 31, 2015. On April 27, 2015, 400,320 shares of restricted common stock were granted to select officers under the 2014 Amended and Restated Stock Incentive Plan for Officers and Employees of Astoria Financial Corporation, or the 2014 Employee Stock Plan, with a grant date fair value of $13.07 per share, substantially all of which vest one-third per year on or about December 14, beginning December 2015.  In the event the grantee terminates his/her employment due to death or disability, or in the event we experience a change in control, as defined and specified in the 2014 Employee Stock Plan, all restricted common stock granted pursuant to such plan immediately vests.  Also, on April 27, 2015, 409,800 performance-based restricted stock units were granted to select officers under the 2014 Employee Stock Plan with a grant date fair value of $12.64 per unit.  Each restricted stock unit granted represents a right, under the 2014 Employee Stock Plan, to receive one share of our common stock in the future, subject to meeting certain criteria.  The restricted stock units have specified performance objectives within a specified performance measurement period and no voting or dividend rights prior to vesting and delivery of shares.  The performance measurement period for these restricted stock units is the fiscal year ending December 31, 2017 and the vest date is February 1, 2018.  Shares will be issued on the vest date at a specified percentage of units granted, ranging from 0% to 125%, based on actual performance during the performance measurement period.  However, in the event of a change in control prior to the end of the performance measurement period, the restricted stock units will vest on the change in control date and shares will be issued at 100% of units granted.  Absent a change in control, if a grantee’s employment terminates prior to the end of the performance measurement period all restricted stock units will be forfeited.  In the event a grantee’s employment terminates during the period on or after the end of the performance measurement period through the vest date due to death, disability, retirement or a change in control, the grantee will remain entitled to the shares otherwise earned. 

The following table summarizes restricted common stock and performance-based restricted stock unit activity in our stock incentive plans for the three months ended March 31, 2015.

	Restricted Common Stock							Restricted Stock Units
	Number of Shares			Weighted Average Grant Date Fair Value				Number of Units			Weighted Average Grant Date Fair Value
Unvested at January 1, 2015		752,701			$	11.90			776,500			$	10.66
Granted		26,232			12.58				—			—
Vested		(4,000	)		(8.95		)		—			—
Forfeited		(41,404	)		(11.54		)		(32,300	)		(10.89		)
Unvested at March 31, 2015		733,529			11.96				744,200			10.65

Stock-based compensation expense is recognized on a straight-line basis over the vesting period and totaled $995,000, net of taxes of $614,000, for the three months ended March 31, 2015 and $1.3 million, net of taxes of $712,000, for the three months ended March 31, 2014.  At March 31, 2015, exclusive of the compensation cost related to the April 27, 2015 grant, pre-tax compensation cost related to all nonvested awards of restricted common stock and restricted stock units not yet recognized totaled $9.0 million and will be recognized over a weighted average period of approximately 1.6 years, which excludes $1.7 million of pre-tax compensation cost related to 65,000 shares of performance-based restricted common stock and 95,025 performance-based restricted stock units, for which compensation cost will begin to be recognized when the achievement of the performance conditions becomes probable.