Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2017

Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted-average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.

The following table shows computation of basic and diluted earnings per share.


	Three Months Ended
	March 31
	2017		2016
	(Unaudited)		(Unaudited)
Basic earnings per share
Net income	$	8,224	$	5,381
Less: Preferred stock dividends		—		42

Net income available to common shareholders	$	8,224	$	5,339

Weighted average common shares outstanding⁽¹⁾		22,175,526		17,924,124

Basic earnings per share	$	0.37	$	0.30


Diluted earnings per share
Net income available to common shareholders	$	8,224	$	5,339

Weighted average common shares outstanding⁽¹⁾		22,175,526		17,924,124
Effect of dilutive securities:
Restricted stock		36,336		31,550
Stock options		114,209		57,053

Weighted average shares outstanding		22,326,071		18,012,726

Diluted earnings per share	$	0.37	$	0.30

⁽¹⁾	Adjusted for 3:2 stock split on November 14, 2016

There were zero shares for the three months ended March 31, 2017 and 2016 which were not included in the computation of diluted earnings per share because they were non-dilutive.

Horizon has share-based employee compensation plans, which are described in the notes to the financial statements included in the December 31, 2016 Annual Report on Form 10-K.

Reclassifications

Reclassifications

Certain reclassifications have been made to the 2016 condensed consolidated financial statements to be comparable to 2017. These reclassifications had no effect on net income.