Earnings Per Share

6 Months Ended

Jun. 30, 2016

8.	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 six months ended June 30, 2016 and 2015, there were no outstanding stock options to include in the diluted earnings per share calculations.

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 unvested stock awards are participating securities.

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


	Three months ended						Six months ended
	June 30,						June 30,
	2016			2015			2016			2015
Basic earnings per common share computation:
Net income per consolidated statements of income	$	4,065		$	5,602		$	9,084		$	11,167
Net earnings allocated to participating securities		(27	)		(33	)		(60	)		(62	)

Net earnings allocated to common stock	$	4,038		$	5,569		$	9,024		$	11,105

Distributed earnings allocated to common stock	$	2,369		$	2,362		$	4,737		$	4,731
Undistributed earnings allocated to common stock		1,669			3,207			4,287			6,374

Net earnings allocated to common stock	$	4,038		$	5,569		$	9,024		$	11,105

Weighted average common shares outstanding, including shares considered participating securities		14,460			14,404			14,448			14,410
Less: Average participating securities		(92	)		(80	)		(86	)		(73	)

Weighted average shares		14,368			14,324			14,362			14,337

Basic earnings per common share	$	0.28		$	0.39		$	0.63		$	0.77

Diluted earnings per common share computation:
Net earnings allocated to common stock	$	4,038		$	5,569		$	9,024		$	11,105

Weighted average shares and dilutive potential common shares		14,368			14,324			14,362			14,366

Diluted earnings per common share	$	0.28		$	0.39		$	0.63		$	0.77