Equity-Based Compensation

6 Months Ended

Jun. 30, 2013

Share-based Compensation [Abstract]

Equity-Based Compensation

EQUITY-BASED COMPENSATION

As of June 30, 2013, we had three stock incentive plans under which performance share grants, restricted stock unit (RSU) grants and stock options were outstanding, with approximately 260,000 shares authorized for future use under the 2005 Stock Incentive Plan.

The following table details our equity-based compensation expense and director deferred compensation expense (income) for the quarters and six months ended June 30:

	Quarter Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2013			2012		2013		2012
Employee equity-based compensation expense:
Performance shares	$	891		$	892	$	1,753	$	1,707
Restricted stock units	138			159		348		291
Total employee equity-based compensation expense	$	1,029		$	1,051	$	2,101	$	1,998
Actual tax benefit realized for tax deductions from equity-based plans	$	48		$	—	$	71	$	—
Director deferred compensation expense (income)	$	(940	)	$	184	$	350	$	427

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 June 30, 2013, and changes during the six months ended June 30, 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	(10,786	)	45.83
Unvested shares outstanding at June 30	232,539		50.97		$	9,097

As of June 30, 2013, there was $6.1 million of unrecognized compensation cost related to unvested performance share awards, which is expected to be recognized over a weighted average period of 1.5 years.

RESTRICTED STOCK UNITS

The following table summarizes outstanding RSU awards as of June 30, 2013, and changes during the six months ended June 30, 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	18,949		45.43
Vested	(3,100	)	36.60
Forfeited	(5,410	)	35.83
Unvested shares outstanding at June 30	50,658		38.57		$	2,049

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 six months ended June 30, 2013 was $0.1 million. As of June 30, 2013, there was $1.0 million of total unrecognized compensation cost related to non-vested RSU awards, which is expected to be recognized over a weighted average period of 1.3 years.

STOCK OPTIONS

The following table summarizes outstanding stock options as of June 30, 2013, and changes during the six months ended June 30, 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	(65,461	)	27.47		$	1,312
Shares canceled or expired	—		—
Outstanding and exercisable at June 30	18,366		27.42		239

Cash received from stock options exercised during the six months ended June 30, 2013 and 2012 was $1.8 million and $0.1 million, respectively. There were no unvested stock options outstanding during the six months ended June 30, 2013. The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2012 was $0.1 million.

The following table summarizes outstanding stock options as of June 30, 2013:

	Options Outstanding and Exercisable
Range of Exercise Prices	Outstanding	Weighted Avg. Remaining Contractual Life
$19.2569	5,507	0.42 years
$30.9204	12,859	1.42 years
	18,366	1.12 years