13.
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Common Stock, Compensation Plans and Other
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Common Stock
The
Companys Restated Articles of Incorporation, as amended, authorize the issuance of up to 200,000,000 shares of common stock, par value $0.01 per share.
The Company also has the authority to issue up to 5,500,000 shares of preferred stock, par value $0.01 per share under the Companys
Restated Articles of Incorporation.
Stock Repurchases
On February 21, 2018, the Companys Board of Directors authorized the repurchase of up to an additional 5,000,000 shares of its
common stock under the previously approved stock repurchase program, which brought the total amount of authorized shares to repurchase to 14,752,000 shares. During 2018, the Company utilized a portion of this stock repurchase program.
During 2018, the Company repurchased a total of 5,307,689 shares with a weighted-average stock price of $19.62 per share. The 2018 earnings
were used to fund the repurchases during the year. Shares repurchased under the program as of December 31, 2018 total 9,832,553 shares. The remaining balance available for repurchase is 4,919,447 shares at December 31, 2018. Additionally,
on January 18, 2019, the Board of Directors of the Company authorized the repurchase of up to an additional 5,000,000 shares of the Companys common stock under this repurchase program.
Stock Compensation Plans
The Company has a stock option and performance incentive plan known as the Amended and Restated 2006 Stock Option and Performance Incentive
Plan (the Plan). The purpose of the Plan is to attract and retain highly qualified officers, directors, key employees, and other persons, and to motivate those persons to improve the Companys business results. On April 19,
2018 at the Annual Meeting of Shareholders of the Company, the shareholders approved, as proposed in the Proxy Statement, an amendment to the Plan to increase the number of shares of the Companys common stock available for issuance under the
Plan by 2,000,000 shares to 13,288,000 shares. The Plan provides for the granting of incentive and
non-qualified
stock options and other equity awards, including the issuance of restricted shares. As of
December 31, 2018, the maximum total number of shares of the Companys common stock available for issuance under the Plan was 13,288,000. At December 31, 2018, the Company had approximately 1,831,443 shares of common stock remaining
available for future grants and approximately 5,448,146 shares of common stock reserved for issuance pursuant to outstanding awards under the Plan.
During the third quarter of 2018, the Company granted 1,452,000 stock options and 843,500 shares of restricted stock to certain employees
under the HOMB $2.00 performance incentive program (HOMB $2.00). The purpose of the performance-based incentive plan is to motivate employees to help the Company achieve $2.00 of diluted earnings per share, as adjusted (non-GAAP), over a
consecutive four-quarter period.
The intrinsic value of the stock options outstanding at December 31, 2018, 2017, and 2016 was
$2.9 million, $16.2 million and $30.2 million, respectively. The intrinsic value of the stock options vested at December 31, 2018, 2017 and 2016 was $2.8 million, $9.9 million and $12.1 million, respectively.
The intrinsic value of the stock options exercised during 2018, 2017 and 2016 was $2.7 million, $3.7 million, and $8.0 million,
respectively.
Total unrecognized compensation cost, net of income tax benefit, related to
non-vested
awards, which are expected to be recognized over the vesting periods, was approximately $13.4 million as of December 31, 2018.
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