STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2015

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 5 — STOCK-BASED COMPENSATION

Pursuant to the Company’s 1998 Stock Incentive Plan, as amended, the Company issues stock options and restricted stock awards to employees and outside directors. The Company did not issue any stock options during the three and six months ended June 30, 2015 and 2014.

The restricted stock awards vest ratably in three years or cliff vest in three or five years of continued employment from the date of grant. Some of the restricted stock awards also include a Company financial performance requirement for vesting. The Company receives an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted stock when the restrictions are released and the shares are issued. Restricted stock awards are forfeited if the employees terminate employment before the restrictions lapse or if the established financial goals are not achieved.

The Company recognized the following stock compensation expense and related net tax benefit associated with its various employee share-based compensation plans:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2015		2014		2015		2014
Compensation expense related to restricted stock awards	$	3,698	$	3,565	$	7,652	$	6,745
Net tax benefit recognized in equity for stock compensation plans	$	51	$	79	$	3,196	$	3,787

The following table presents a summary of the activity for the Company’s time-based and performance-based restricted stock awards as of June 30, 2015, including changes during the six months ended June 30, 2015:

	June 30, 2015
	Restricted Stock Awards
	Time-Based				Performance-Based
	Shares		Weighted Average Price		Shares		Weighted Average Price
Outstanding at beginning of period	751,020		$	30.61	518,553		$	29.64
Granted	430,078		40.07		149,284		39.95
Vested	(213,625	)	23.32		(144,445	)	22.05
Forfeited	(37,221	)	36.14		—		—
Outstanding at end of period	930,252		$	36.44	523,392		$	35.64

As of June 30, 2015, total unrecognized compensation cost related to time-based and performance-based restricted stock awards amounted to $27.3 million and $11.0 million, respectively. These costs are expected to be recognized over a weighted average period of 2.22 years and 2.09 years, respectively.