NYCB 2017 Annual Report

127 The following table provides a summary of activity with regard to restricted stock awards in the year ended December 31, 2017: For the Year Ended December 31, 2017 Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 6,930,306 $15.37 Granted 2,956,249 15.16 Vested (3,867,828) 15.19 Cancelled (444,560) 15.55 Unvested at end of year 5,574,167 15.38 As of December 31, 2017, unrecognized compensation cost relating to unvested restricted stock totaled $78.7 million. This amount will be recognized over a remaining weighted average period of 3.1 years. NOTE 14: FAIR VALUE MEASUREMENTS GAAP sets forth a definition of fair value, establishes a consistent framework for measuring fair value, and requires disclosure for each major asset and liability category measured at fair value on either a recurring or non- recurring basis. GAAP also clarifies that fair va lue is an “exit” price, representing the amount that would be received when selling an asset, or paid when transferring a liability, in an orderly transaction between market participants. Fair value is thus a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – Inputs to the valuation methodology are significant unobservable inputs that reflec t a company’s own assumptions about the assumptions that market participants use in pricing an asset or liability. A financial instrument’s categorization within this valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.