Equity-Based Compensation

3 Months Ended

Mar. 31, 2013

Share-based Compensation [Abstract]

Equity-Based Compensation

EQUITY-BASED COMPENSATION

As of March 31, 2013, we had three stock incentive plans under which performance share grants, restricted stock unit (RSU) grants and stock options were outstanding, with approximately 285,000 shares authorized for future use under the 2005 Stock Incentive Plan.

The following table details our compensation expense for the three months ended March 31:

(Dollars in thousands)	2013		2012
Employee equity-based compensation expense:
Performance shares	$	862	$	815
Restricted stock units	210		132
Total employee equity-based compensation expense	$	1,072	$	947
Director deferred compensation expense	$	1,290	$	243
Actual tax benefit realized for tax deductions from equity-based plans	$	23	$	—

PERFORMANCE SHARES

The following table presents the key inputs used in the Monte Carlo simulation method to calculate the fair value of the performance share awards in 2013 and 2012, and the resulting fair values:

	2013			2012
Shares granted	83,111			85,028
Stock price as of valuation date	$	45.31		$	31.11
Risk-free rate	0.40		%	0.40		%
Fair value of a performance share	$	62.78		$	34.24

The following table summarizes outstanding performance share awards as of March 31, 2013, and changes during the three months ended March 31, 2013:

(Dollars in thousands, except grant date fair value)	Shares		Weighted Avg. Grant Date Fair Value		Aggregate Intrinsic Value
Unvested shares outstanding at January 1	160,214		$	44.50
Granted	83,111		62.78
Forfeited	(5,407	)	41.02
Unvested shares outstanding at March 31	237,918		50.96		$	10,521

As of March 31, 2013, there was $7.2 million of unrecognized compensation cost related to unvested performance share awards, which is expected to be recognized over a weighted average period of 1.8 years.

RESTRICTED STOCK UNITS

The following table summarizes outstanding RSU awards as of March 31, 2013, and changes during the three months ended March 31, 2013:

(Dollars in thousands, except grant date fair value)	Shares		Weighted Avg. Grant Date Fair Value		Aggregate Intrinsic Value
Unvested shares outstanding at January 1	40,219		$	34.82
Granted	14,949		45.42
Vested	(2,650	)	36.22
Forfeited	(1,802	)	33.62
Unvested shares outstanding at March 31	50,716		37.91		$	2,326

For RSU awards granted during the period, the fair value of each unit was determined on the date of grant using the grant date market price. The total fair value of RSU awards vested during the three months ended March 31, 2013 was $0.1 million. As of March 31, 2013, there was $1.1 million of total unrecognized compensation cost related to non-vested RSU awards, which is expected to be recognized over a weighted average period of 1.6 years.

STOCK OPTIONS

The following table summarizes outstanding stock options as of March 31, 2013, and changes during the three months ended March 31, 2013:

(Dollars in thousands, except exercise prices)	Shares		Weighted Avg. Exercise Price		Aggregate Intrinsic Value
Outstanding at January 1	83,827		$	27.46
Shares exercised	(27,941	)	23.88		$	559
Shares canceled or expired	—		—
Outstanding and exercisable at March 31	55,886		29.24		929

There were no unvested stock options outstanding during the three months ended March 31, 2013. The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2012 was $0.1 million.

The following table summarizes outstanding stock options as of March 31, 2013:

	Options Outstanding and Exercisable
Range of Exercise Prices	Outstanding	Weighted Avg. Remaining Contractual Life
$19.2569	8,028	0.67 years
$30.9204	47,858	1.67 years
$19.2569 to $30.9204	55,886	1.52 years

The weighted average exercise price of the outstanding stock options was $29.24 as of March 31, 2013. Cash received from stock option exercises for the three months ended March 31, 2013 and 2012 was 0.7 million and 0.1 million, respectively.