EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2014

EARNINGS PER SHARE

EARNINGS PER SHARE

12. EARNINGS PER SHARE

FASB ASC 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”).  The restricted stock awards and restricted stock units granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities.  The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. Prior period EPS figures have been presented in accordance with this accounting guidance.

The following is a reconciliation of earnings per share for December 31, 2014, 2013 and 2012:

For the Years Ended December 31,	2014			2013			2012
(In thousands, except per share data)
Net Income	$	13,763		$	13,093		$	12,772
Less: Dividends paid on and earnings allocated to participating securities	(319		)	(329		)	(328		)
Income attributable to common stock	$	13,444		$	12,764		$	12,444
Weighted average common shares outstanding, including participating securities	11,633			9,622			8,633
Less: weighted average participating securities	(278		)	(242		)	(223		)
Weighted average common shares outstanding	11,355			9,380			8,410
Basic earnings per common share	$	1.18		$	1.36		$	1.48
Income attributable to common stock	$	13,444		$	12,764		$	12,444
Weighted average common shares outstanding	11,355			9,380			8,410
Weighted average common equivalent shares outstanding	—			—			1
Weighted average common and equivalent shares outstanding	11,355			9,380			8,411
Diluted earnings per common share	$	1.18		$	1.36		$	1.48

There were 39,870, 45,395 and 49,362 options outstanding at December 31, 2014, 2013 and 2012, respectively that were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. The $16.0 million in convertible trust preferred securities outstanding at December 31, 2014, 2013, and 2012 were not included in the computation of diluted earnings per share because the assumed conversion of the trust preferred securities was antidilutive.