Common Stock and Earnings per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Common Stock and Earnings per Share

Note 9Common Stock and Earnings per Share

The table below shows activity in the outstanding shares of the Company’s common stock during 2016.

	2016
Shares outstanding at January 1	11,332,272
Issuance of common stock:
Employee restricted stock grants	15,455
Employee SARs exercised	20,761
Directors’ compensation	9,029
Shares repurchased	(187,123	)
Shares forfeited	(1,928	)
Shares outstanding at December 31	11,188,466

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. Under the treasury stock method, stock appreciation rights (“SARs”) are dilutive when the average market price of the Company’s common stock, combined with the effect of any unamortized compensation expense, exceeds the SAR price during a period. Anti-dilutive shares are those SARs with prices in excess of the current market value.

The calculations of basic and diluted earnings per share are as follows:

	December 31,
(In thousands except share and per share data)	2016		2015		2014
Basic:
Net income	$	24,348	$	23,056	$	24,033
Weighted average common shares outstanding		11,150,395		11,358,609		11,479,025
Basic earnings per share	$	2.18	$	2.03	$	2.09
Diluted:
Net income	$	24,348	$	23,056	$	24,033
Weighted average common shares outstanding		11,150,395		11,358,609		11,479,025
Effect of dilutive restricted stock and SARs		156,729		159,819		164,954
Weighted average common shares outstanding
assuming dilution		11,307,124		11,518,428		11,643,979
Diluted earnings per share	$	2.15	$	2.00	$	2.06