Earnings Per Share

12 Months Ended

Dec. 31, 2015

Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

Stock options, where the exercise price was greater than the average market price of the common shares, were excluded from the computation of diluted earnings per common share because the result would have been antidilutive. No stock options were considered antidilutive as of December 31, 2015, 2014 and 2013.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share for the three years ending December 31.



(Dollars in thousands - except per share amounts)	2015		2014		2013
Distributed earnings allocated to common stock	$	17,582	$	17,091	$	16,563
Undistributed earnings allocated to common stock	39,336		40,249		37,673
Net earnings allocated to common stock	56,918		57,340		54,236
Net earnings allocated to participating securities	568		729		722
Net income allocated to common stock and participating securities	$	57,486	$	58,069	$	54,958

Weighted average shares outstanding for basic earnings per common share*	26,173,351		26,434,769		26,779,086
Dilutive effect of stock compensation*	—		—		644
Weighted average shares outstanding for diluted earnings per common share*	26,173,351		26,434,769		26,779,730

Basic earnings per common share*	$	2.17	$	2.17	$	2.03
Diluted earnings per common share*	$	2.17	$	2.17	$	2.03

*Outstanding shares and per common share figures have been adjusted for 10% stock dividend declared July 22, 2015 and issued on August 14, 2015.