XML 30 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Earnings Per Common Share
 9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Common Share
Earnings Per Common Share

The Corporation calculates earnings per common share (EPS) using the two-class method. The two-class method allocates net income to each class of Common Stock and participating security according to the common dividends declared and participation rights in undistributed earnings. Participating securities consist of unvested stock-based payment awards that contain nonforfeitable rights to dividends. The Corporation also uses the treasury stock method to calculate dilutive EPS. The treasury stock method assumes that the Corporation uses the proceeds from a hypothetical exercise of options to repurchase Common Stock at the average market price during the period. The reconciliation between basic and diluted earnings per share is presented as follows:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
Basic EPS
(Dollars in thousands, except per share data)
Net income
$
2,086

 
$
1,519

 
$
5,715

 
$
4,455

Less:
 
 
 
 
 
 
 
Preferred stock dividend and accretion
—

 
109

 
16

 
483

Income allocated to participating securities
8

 
13

 
24

 
40

Net income allocated to common shareholders
$
2,078

 
$
1,397

 
$
5,675

 
$
3,932

 
 
 
 
 
 
 
 
Average common shares outstanding
9,665,088

 
9,303,702

 
9,666,107

 
8,940,213

Less: participating shares included in average common shares outstanding
38,552

 
90,532

 
43,371

 
99,268

Average common shares outstanding used in basic EPS
9,626,536

 
9,213,170

 
9,622,736

 
8,840,945

Basic net income per common share
$
0.22

 
$
0.15

 
$
0.59

 
$
0.44

 
 
 
 
 
 
 
 
Diluted EPS:
 
 
 
 
 
 
 
Income used in diluted earnings per share calculation
$
2,078

 
$
1,397

 
$
5,675

 
$
3,932

 
 
 
 
 
 
 
 
Average common shares outstanding
9,626,536

 
9,213,170

 
9,622,736

 
8,840,945

Add: Common Stock equivalents:
 
 
 
 
 
 
 
Stock Options
32,718

 
12,292

 
14,619

 
9,184

Average common stock shares outstanding
9,659,254

 
9,225,462

 
9,637,355

 
8,850,129

Diluted earnings per common share
$
0.22

 
$
0.15

 
$
0.59

 
$
0.44



Options to purchase 451,530 common shares were considered in computing diluted earnings per common share for the three month and nine month periods ended September 30, 2014. For the three month and nine month periods ended September 30, 2014, approximately 288,834 and 316,668 of options to purchase shares of common stock were not included in the computation of diluted earnings per share because the effect would be antidilutive. Options to purchase 369,363 common shares were considered in computing diluted earnings per common share for the three and nine month periods ended September 30, 2013. For the three month and nine month periods ended September 30, 2013, approximately 331,863 and 224,000 of options to purchase shares of common stock were not included in the computation of diluted earnings per share because the effect would be antidilutive.