Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

7. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. For the three and nine months ended September 30, 2013, 37,500 shares issuable pursuant to outstanding stock options were excluded from the diluted earnings per share calculations because the strike prices associated with the options exceeded the market price of the Corporation’s common stock thus making the shares anti-dilutive. There were no anti-dilutive shares outstanding during the three and nine months ended September 30, 2014.

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding non-vested stock awards are participating securities.

The computation of basic and diluted earnings per share is shown below (in thousands except share and per share data):

	Three months ended						Nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
Basic earnings per common share computation:
Net income per consolidated statements of income	$	5,548		$	4,703		$	16,331		$	11,951
Net earnings allocated to participating securities		(23	)		(21	)		(70	)		(56	)
Net earnings allocated to common stock	$	5,525		$	4,682		$	16,261		$	11,895
Distributed earnings allocated to common stock	$	2,359		$	2,054		$	7,109		$	6,161
Undistributed earnings allocated to common stock		3,166			2,628			9,152			5,734
Net earnings allocated to common stock	$	5,525		$	4,682		$	16,261		$	11,895
Weighted average common shares outstanding, including shares considered participating securities		14,368			12,513			14,421			12,505
Less: Average participating securities		(53	)		(51	)		(55	)		(52	)
Weighted average shares		14,315			12,462			14,366			12,453
Basic earnings per common share	$	0.39		$	0.38		$	1.13		$	0.96
Diluted earnings per common share computation:
Net earnings allocated to common stock	$	5,525		$	4,682		$	16,261		$	11,895
Weighted average common shares outstanding for basic earnings per common share		14,315			12,462			14,366			12,453
Add: Dilutive effects of assumed exercises of stock options		1			2			1			1
Weighted average shares and dilutive potential common shares		14,316			12,464			14,367			12,454
Diluted earnings per common share	$	0.39		$	0.38		$	1.13		$	0.96