Equity-Based Compensation

3 Months Ended

Mar. 31, 2015

Share-based Compensation [Abstract]

Equity-Based Compensation

EQUITY-BASED COMPENSATION

As of March 31, 2015, we had two stock incentive plans under which performance shares, restricted stock units (RSUs) and deferred compensation stock equivalent units were outstanding. These plans have received shareholder approval. We were originally authorized to issue up to 1.6 million shares and 1.0 million shares under our 2005 Stock Incentive Plan and 2014 Stock Incentive Plan, respectively. At March 31, 2015, approximately 1.0 million shares were authorized for future use under the two plans. We issue new shares of common stock to settle performance shares, restricted stock units and deferred compensation stock equivalent units.

The following table details compensation expense and the related income tax benefit:

	Three Months Ended   March 31,
(Dollars in thousands)	2015		2014
Employee equity-based compensation expense:
Performance shares	$	872	$	734
Restricted stock units	205		174
Total employee equity-based compensation expense	$	1,077	$	908
Deferred compensation stock equivalent units expense (income)	$	119	$	(295	)
Total tax benefit recognized for share-based expense	$	74	$	74

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 2015 and 2014, and the resulting fair values:

	Three Months Ended   March 31,
	2015			2014
Shares granted	78,974			87,441
Stock price as of valuation date	$	40.00		$	39.76
Risk-free rate	1.07		%	0.72		%
Fair value of a performance share	$	36.71		$	45.57

The following table summarizes outstanding performance share awards as of March 31, 2015, and changes during the three months ended March 31, 2015:

(Dollars in thousands, except grant date fair value)	Shares	Weighted Avg. Grant Date Fair Value		Aggregate Intrinsic Value
Unvested shares outstanding at January 1	160,233	$	53.86
Granted	78,974	36.71
Unvested shares outstanding at March 31	239,207	48.20		$	9,196

As of March 31, 2015, there was $6.0 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, 2015, and changes during the three months ended March 31, 2015:

(Dollars in thousands, except grant date fair value)	Shares		Weighted Avg. Grant Date Fair Value		Aggregate Intrinsic Value
Unvested shares outstanding at January 1	32,455		$	42.24
Granted	26,820		40.00
Vested	(400	)	45.05
Unvested shares outstanding at March 31	58,875		41.19		$	2,357

The fair value of each RSU equaled our common share price on the date of grant. The total fair value of RSU awards vested during the three months ended March 31, 2015 was less than $0.1 million. As of March 31, 2015, there was $1.7 million of total unrecognized compensation cost related to unvested RSU awards, which is expected to be recognized over a weighted average period of 2.0 years.