Equity-Based Compensation

9 Months Ended

Sep. 30, 2015

EQUITY-BASED COMPENSATION

As of September 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 September 30, 2015, approximately 1.1 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 September 30,					Nine Months Ended September 30,
	Quarter Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015			2014		2015		2014
Employee equity-based compensation expense:
Performance shares	$	1,090		$	882	$	2,912	$	2,577
Restricted stock units	240			144		677		481
Total employee equity-based compensation expense	$	1,330		$	1,026	$	3,589	$	3,058

Deferred compensation stock equivalent units expense (income)	$	(1	)	$	62	$	165	$	217

Total tax benefit recognized for share-based expense	$	89		$	111	$	241	$	125

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:



	Nine Months Ended September 30,
	Nine Months Ended September 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 September 30, 2015, and changes during the nine months ended September 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
Forfeited	(1,079	)	$	41.29
Unvested shares outstanding at September 30	238,128		$	48.23	$	6,690

As of September 30, 2015, there was $4.1 million of unrecognized compensation cost related to unvested performance share awards, which is expected to be recognized over a weighted-average period of 1.8 years.

RESTRICTED STOCK UNITS

The following table summarizes outstanding RSU awards as of September 30, 2015, and changes during the nine months ended September 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	(4,700	)	$	43.22
Forfeited	(359	)	$	40.27
Unvested shares outstanding at September 30	55,216		$	41.03	$	1,590

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 nine months ended September 30, 2015 was $0.2 million. As of September 30, 2015, there was $1.2 million of total unrecognized compensation cost related to unvested RSU awards, which is expected to be recognized over a weighted-average period of 1.4 years.