Equity-Based Compensation

6 Months Ended

Jun. 30, 2015

EQUITY-BASED COMPENSATION

As of June 30, 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 June 30, 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:



	Quarter Ended June 30,				Six Months Ended June 30,
	Quarter Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2015		2014		2015		2014
Employee equity-based compensation expense:
Performance shares	$	950	$	961	$	1,822	$	1,695
Restricted stock units	232		163		437		337
Total employee equity-based compensation expense	$	1,182	$	1,124	$	2,259	$	2,032

Deferred compensation stock equivalent units expense (income)	$	47	$	427	$	166	$	(14	)

Total tax benefit recognized for share-based expense	$	78	$	81	$	152	$	155

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:



	Six Months Ended June 30,
	Six Months Ended June 30,
	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 June 30, 2015, and changes during the six months ended June 30, 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 June 30	239,207	$	48.20	$	8,112

As of June 30, 2015, there was $5.0 million of unrecognized compensation cost related to unvested performance share awards, which is expected to be recognized over a weighted-average period of 1.9 years.

RESTRICTED STOCK UNITS

The following table summarizes outstanding RSU awards as of June 30, 2015, and changes during the six months ended June 30, 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	27,820		$	39.99
Vested	(2,400	)	$	45.79
Unvested shares outstanding at June 30	57,875		$	41.01	$	2,044

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 six months ended June 30, 2015 was $0.1 million. As of June 30, 2015, there was $1.5 million of total unrecognized compensation cost related to unvested RSU awards, which is expected to be recognized over a weighted-average period of 1.8 years.