Earnings per Share

The Corporation uses the two-class method to calculate earnings per share as the unvested restricted stock issued under the Corporation's equity incentive plans are participating shares with nonforfeitable rights to dividends. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the number of weighted average shares outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:



	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars and shares in thousands, except per share data)	2017			2016			2017			2016
Numerator:
Net income	$	11,778		$	5,240		$	22,634		$	12,529
Net income allocated to unvested restricted stock	(122		)	(40		)	(234		)	(98		)
Net income allocated to common shares	$	11,656		$	5,200		$	22,400		$	12,431
Denominator:
Denominator for basic earnings per share—weighted-average shares outstanding	26,380			19,434			26,363			19,418
Effect of dilutive securities—employee stock options	97			35			100			33
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	26,477			19,469			26,463			19,451
Basic earnings per share	$	0.44		$	0.27		$	0.85		$	0.64
Diluted earnings per share	$	0.44		$	0.27		$	0.85		$	0.64
Average anti-dilutive options and awards excluded from computation of diluted earnings per share	302			619			272			603