Huntington National Bank 2008 Annual Report Download - page 109

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the option. The following table illustrates the weighted-average assumptions used in the option-pricing model for options granted
in the three years ended December 31, 2008, 2007 and 2006.
2008 2007 2006
Assumptions
Risk-free interest rate 3.41%4.74% 4.96%
Expected dividend yield 5.28 5.26 4.24
Expected volatility of Huntington’s common stock 34.8 21.1 22.2
Expected option term (years) 6.0 6.0 6.0
Weighted-average grant date fair value per share $1.54 $2.80 $4.21
For the years ended December 31, 2008, 2007, and 2006, share-based compensation expense was $14.1 million, $21.8 million, and
$18.6 million, respectively. The tax benefits recognized related to share-based compensation for the years ended December 31,
2008, 2007, and 2006, were $4.9 million, $7.6 million and $6.5 million, respectively.
Huntington’s stock option activity and related information for the year ended December 31, 2008, was as follows:
(in thousands, except per share amounts) Options
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value
Outstanding at January 1, 2008 28,065 $20.55
Granted 1,876 7.23
Forfeited/expired (3,652) 21.66
Outstanding at December 31, 2008 26,289 $19.45 3.8 $1,142
Exercisable at December 31, 2008 22,694 $20.32 3.5 $ —
The aggregate intrinsic value represents the amount by which the fair value of underlying stock exceeds the option exercise price.
There were no exercises of stock options in 2008. The total intrinsic value of stock options exercised during 2007 and 2006 was
$4.3 million and $11.8 million, respectively.
Cash received from the exercise of options for 2007 and 2006 was $17.4 million and $36.8 million, respectively. The tax benefit
realized for the tax deductions from option exercises totaled $2.8 million for each respective year.
The following table summarizes the status of Huntington’s nonvested share awards for the year ended December 31, 2008:
(in thousands, except per share amounts)
Restricted
Stock
Units
Weighted-
Average
Grant Date
Fair Value
Per Share
Nonvested at January 1, 2008 1,086 $21.35
Granted 877 7.09
Vested (54) 20.78
Forfeited (86) 18.61
Nonvested at December 31, 2008 1,823 $14.64
The weighted-average grant date fair value of nonvested shares granted for the years ended December 31, 2008, 2007 and 2006,
were $7.09, $20.67 and $23.37, respectively. The total fair value of awards vested during the years ended December 31, 2008, 2007
and 2006, was $0.4 million, $3.5 million, and $17.0 million, respectively. As of December 31, 2008, the total unrecognized
compensation cost related to nonvested awards was $12.1 million with a weighted-average expense recognition period of 1.8 years.
107
Notes to Consolidated Financial Statements Huntington Bancshares Incorporated