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EARNINGS PER SHARE
 3 Months Ended
Mar. 31, 2015
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
EPS
 
The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below: 
 
 
Three Months Ended 
 March 31,
 
 
2015
 
2014
Net income
 
$
5,611

 
$
5,715

Dividends and undistributed earnings allocated to participating securities(1)
 
(17
)
 
(17
)
Net income available to common shareholders
 
$
5,594

 
$
5,698

Weighted-average common shares outstanding for basic EPS
 
7,431,065

 
7,528,751

Dilutive effect of stock-based awards(2)
 
22,810

 
23,034

Weighted-average common and potential common shares for diluted EPS
 
7,453,875

 
7,551,785

Earnings per common share:
 
 

 
 

Basic EPS
 
$
0.75

 
$
0.76

Diluted EPS
 
$
0.75

 
$
0.75

Awards excluded from the calculation of diluted EPS(3):
 
 
 
 
Stock options
 
15,250

 
15,250

(1) Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends.
(2) Represents the effect of the assumed exercise of stock options, vesting of restricted shares, vesting of restricted stock units, and vesting of LTIP awards that have met the performance criteria, as applicable, utilizing the treasury stock method.
(3) Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock.

Nonvested stock-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of the Company’s nonvested stock-based awards qualify as participating securities. 
  
Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested stock-based awards. 
 
Diluted EPS is computed in a similar manner, except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method.