Earnings per Share

6 Months Ended

Jun. 30, 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 June 30,				Six months ended June 30,
	2016		2015		2016		2015
Distributed earnings allocated to common stock	$	6,375	$	6,344	$	12,751	$	12,688
Undistributed earnings allocated to common stock	6,016		5,505		11,204		16,950
Net earnings allocated to common shareholders	$	12,391	$	11,849	$	23,955	$	29,638

Average shares outstanding	14,889		15,104		14,903		15,079
Effect of dilutive securities:
Warrant outstanding	—		—		—		55
Employee stock awards	13		23		12		22
Shares for diluted earnings per share	14,902		15,127		14,915		15,156

Basic earnings per share	$	0.83	$	0.78	$	1.61	$	1.97
Diluted earnings per share	$	0.83	$	0.78	$	1.61	$	1.96

During the three months ended June 30, 2015 there were no anti-dilutive options outstanding. Options to purchase approximately 4,200 shares of common stock were outstanding during the three months ended June 30, 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.