Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Compensation Expense Included in Non-Interest Expense and Related Income Tax Benefits

The following table represents the compensation expense that is included in non-interest expense and related income tax benefits in the accompanying consolidated statements of comprehensive income related to stock options for the years ended December 31:


(Dollars in thousands, except per share data)	2014		2013		2012
Compensation expense related to stock options	$	2,053	$	2,110	$	1,873
Income tax benefit related to stock options		719		739		656
Impact on basic earnings per share		0.04		0.05		0.04
Impact on diluted earnings per share		0.04		0.05		0.04

Proceeds from the exercise of stock options	$	11,693	$	8,101	$	2,813
Excess tax benefits related to the exercise of stock options		2,105		886		1,221

Estimate Fair Value of Share Option Awards with Weighted-Average Assumptions

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards. The following weighted-average assumptions were used for option awards issued during the years ended December 31:


	2014			2013			2012
Expected dividends		2.1	%		2.6	%		2.7	%
Expected volatility		35.8	%		34.8	%		40.1	%
Risk-free interest rate		2.3	%		1.7	%		0.8	%
Expected term (in years)		7.5			8.6			5.00
Weighted-average grant-date fair value	$	21.26		$	15.37		$	14.50

Activity Related to Stock Options

The following table represents the activity related to stock options during the periods indicated.


	Number of shares			Weighted Average Exercise Price		Aggregate Intrinsic Value (Dollars in thousands)		Weighted Average Remaining Contract Life (in years)
Outstanding options, December 31, 2011		1,097,620		$	50.14
Granted		230,665			51.69
Issued in connection with acquisition		32,863			41.30
Exercised		(92,092	)		30.43	$	1,765
Forfeited or expired		(32,981	)		56.79

Outstanding options, December 31, 2012		1,236,075		$	51.48
Granted		75,722			52.36
Exercised		(200,748	)		40.35		2,740
Forfeited or expired		(38,220	)		55.87

Outstanding options, December 31, 2013		1,072,829		$	53.47
Granted		77,434			65.31
Exercised		(267,421	)		48.57		4,612
Forfeited or expired		(15,160	)		60.38

Outstanding options, December 31, 2014		867,682		$	55.92		8,220		5.1

Exercisable options, December 31, 2012		792,444			50.05
Exercisable options, December 31, 2013		707,934			53.54
Exercisable options, December 31, 2014		562,752			55.92	$	5,449		3.7

Schedule of Weighted Average Remaining Life of Options Outstanding within Stated Exercise Prices

The following table presents weighted average remaining life as of December 31, 2014 for options outstanding within the stated exercise prices:


	Options Outstanding						Options Exercisable
Exercise Price Range Per Share	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Life		Number of Options		Weighted Average Exercise Price
$34.33 to $51.69		182,416	$	49.24		4.3 Years		118,312	$	48.53
$51.70 to $52.35		111,197		52.33		7.1 Years		43,156		52.33
$52.36 to $54.68		146,995		53.43		6.5 Years		90,146		54.10
$54.69 to $57.60		142,360		56.52		3.7 Years		120,873		56.68
$57.61 to $59.83		105,666		58.38		1.5 Years		105,666		58.38
$59.84 to $111.71		179,048		65.06		6.7 Years		84,599		65.89

Total options		867,682	$	55.92		5.1 Years		562,752	$	55.92

Unvested Restricted Stock Award Activity

The following table represents unvested restricted stock award activity for the years ended December 31:


	2014			2013			2012
Balance at beginning of period		523,756			538,202			512,112
Granted		149,072			167,095			176,669
Forfeited		(167,550	)		(28,713	)		(13,164	)
Earned and issued		(18,171	)		(152,828	)		(137,415	)

Balance at end of period		487,107			523,756			538,202

Schedule of Share and Dividend Equivalent Share Award Activity

The following table represents phantom stock award activity during the periods indicated.


	Number of share equivalents			Dividend equivalents			Total share equivalents			Value of share equivalents ⁽¹⁾
Balance, December 31, 2011		232,921			8,942			241,863		$	11,924,000
Granted		119,038			9,152			128,190			6,297,000
Forfeited share equivalents		(10,949	)		(367	)		(11,316	)		556,000
Vested share equivalents		(22,281	)		(1,692	)		(23,973	)		1,180,000

Balance, December 31, 2012		318,729			16,035			334,764		$	16,444,000
Granted		169,662			11,189			180,851			11,366,000
Forfeited share equivalents		(18,975	)		(785	)		(19,760	)		1,242,000
Vested share equivalents		(52,178	)		(4,088	)		(56,266	)		2,922,000

Balance, December 31, 2013		417,238			22,351			439,589		$	27,628,000
Granted		118,859			9,566			128,425			8,328,000
Forfeited share equivalents		(19,736	)		(1,754	)		(21,490	)		1,394,000
Vested share equivalents		(75,331	)		(7,515	)		(82,846	)		5,512,000

Balance, December 31, 2014		441,030			22,648			463,678		$	30,070,000

⁽¹⁾

Except for share equivalents at the beginning of each period, which are based on the value at that time, and vested share payments, which are based on the cash paid at the time of vesting, the value of share equivalents is calculated based on the market price of the Company’s stock at the end of the respective periods. The market price of the Company’s stock was $64.85, $62.85 and $49.12 on December 31, 2014, 2013 and 2012, respectively.

Restricted Stock [Member]

Compensation Expense Included in Non-Interest Expense and Related Income Tax Benefits

The following table represents the compensation expense that was included in non-interest expense in the accompanying consolidated statements of comprehensive income related to restricted stock grants for the years ended December 31 of the periods indicated:


(Dollars in thousands)	2014		2013		2012
Compensation expense related to restricted stock	$	9,931	$	8,593	$	8,035

Phantom Stock Awards [Member]

Compensation Expense Included in Non-Interest Expense and Related Income Tax Benefits


(Dollars in thousands)	2014		2013		2012
Compensation expense related to restricted stock	$	9,932	$	8,593	$	8,035