Earnings per Share

3 Months Ended

Mar. 31, 2016

The following table sets forth the computation of basic and diluted earnings per share using the two class method (in thousands, except per share data):



	Three months ended March 31,
	2016		2015
Distributed earnings allocated to common stock	$	6,365	$	6,315
Undistributed earnings allocated to common stock	5,206		11,468
Net earnings allocated to common shareholders	$	11,571	$	17,783

Average shares outstanding	14,916		15,067
Effect of dilutive securities:
Warrant outstanding	—		62
Employee stock awards	11		20
Shares for diluted earnings per share	14,927		15,149

Basic earnings per share	$	0.78	$	1.18
Diluted earnings per share	$	0.78	$	1.17

During the three months ended March 31, 2015 there were no anti-dilutive options outstanding. Options to purchase approximately 6,400 shares of common stock were outstanding during the three months ended March 31, 2016 but were not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares and therefore, the effect would have been anti-dilutive.