Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2015

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


				Weighted Average
	Number of shares			Exercise Price
Outstanding options, December 31, 2014		867,682		$	55.92
Granted		78,856			62.54
Exercised		(61,884	)		49.89
Forfeited or expired		(10,469	)		71.52

Outstanding options, March 31, 2015		874,185		$	56.76

Exercisable options, March 31, 2015		579,727		$	56.22

Outstanding options, December 31, 2013		1,072,829		$	53.47
Granted		74,971			65.26
Exercised		(169,090	)		48.77
Forfeited or expired		(3,127	)		81.82

Outstanding options, March 31, 2014		975,583		$	55.10

Exercisable options, March 31, 2014		621,050		$	54.69

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 three-month periods ended March 31:


	2015			2014
Expected dividends		2.2	%		2.1	%
Expected volatility		35.6	%		35.8	%
Risk-free interest rate		2.0	%		2.3	%
Expected term (in years)		7.5			7.5
Weighted-average grant-date fair value	$	19.61		$	21.24

Compensation Expense Included in Non-Interest Expense

The following table represents the compensation expense that is included in non-interest expense in the accompanying consolidated statements of comprehensive income related to stock options for the three-month periods ended March 31:


(Dollars in thousands)	2015		2014
Compensation expense related to stock options	$	471	$	519

Unvested Restricted Stock Award and Restricted Share Unit Activity

The following table represents unvested restricted stock award and restricted share unit activity for the three months ended March 31:


	2015			2014
Balance at beginning of period		506,289			523,756
Granted		142,196			142,794
Forfeited		(10,267	)		(1,208	)
Earned and issued		(116,583	)		(105,766	)

Balance at end of period		521,635			559,576

Schedule of Share and Dividend Equivalent Share Award Activity

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


	Number of share			Dividend			Total share			Value of share
	equivalents			equivalents			equivalents			equivalents ⁽¹⁾
Balance, December 31, 2014		459,920			22,940			482,860		$	31,313,000
Granted		133,708			2,480			136,188			8,584,000
Forfeited share equivalents		(11,426	)		(438	)		(11,864	)		(748,000	)
Vested share equivalents		(107,534	)		(6,491	)		(114,025	)		(7,209,000	)

Balance, March 31, 2015		474,668			18,491			493,159		$	31,084,000

Balance, December 31, 2013		417,238			22,351			439,589		$	27,628,000
Granted		119,773			2,335			122,108			8,566,000
Forfeited share equivalents		(3,471	)		(164	)		(3,635	)		(255,000	)
Vested share equivalents		(51,444	)		(3,621	)		(55,065	)		(3,692,000	)

Balance, March 31, 2014		482,096			20,901			502,997		$	35,285,000

⁽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 $63.03 and $70.15 on March 31, 2015, and 2014, respectively.

Restricted Stock Awards and Restricted Share Units [Member]

Compensation Expense Included in Non-Interest Expense

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 awards and restricted share units for the three months ended March 31:


(Dollars in thousands)	2015		2014
Compensation expense related to restricted stock awards and restricted share units	$	2,972	$	2,316

Phantom Stock Awards [Member]

Compensation Expense Included in Non-Interest Expense

The following table indicates compensation expense recorded for phantom stock and performance units based on the number of share equivalents vested at March 31 of the periods indicated and the current market price of the Company’s stock at that time.


	For the Three Months Ended March 31
(Dollars in thousands)	2015		2014
Compensation expense related to phantom stock and performance units	$	3,171	$	2,051