EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2017

EARNINGS PER SHARE

EARNINGS PER SHARE

2. EARNINGS PER SHARE

Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 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 certain 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.

The following table presents the computation of EPS for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share data)	2017			2016			2017			2016
Net Income	$	9,443		$	8,851		$	27,455		$	26,331
Dividends paid on and earnings allocated to participating securities		(197	)		(188	)		(557	)		(542	)
Income attributable to common stock	$	9,246		$	8,663		$	26,898		$	25,789
Weighted average common shares outstanding, including participating securities		19,793			17,537			19,748			17,511
Weighted average participating securities		(412	)		(372	)		(405	)		(365	)
Weighted average common shares outstanding		19,381			17,165			19,343			17,146
Basic earnings per common share	$	0.48		$	0.50		$	1.39		$	1.50
Income attributable to common stock	$	9,246		$	8,663		$	26,898		$	25,789
Impact of assumed conversions - interest on 8.5% trust preferred securities		-			219			32			661
Income attributable to common stock including assumed conversions	$	9,246		$	8,882		$	26,930		$	26,450
Weighted average common shares outstanding		19,381			17,165			19,343			17,146
Incremental shares from assumed conversions of options and restricted stock units		25			15			21			11
Incremental shares from assumed conversions of 8.5% trust preferred securities		-			546			23			531
Weighted average common and equivalent shares outstanding		19,406			17,726			19,387			17,688
Diluted earnings per common share	$	0.48		$	0.50		$	1.39		$	1.50

There were no stock options outstanding for the nine months ended September 30, 2017. There were no stock options that were antidilutive for the nine months ended September 30, 2016. There were no restricted stock units that were antidilutive for the three and nine months ended September 30, 2017 and 2016. The $15.7 million in trust preferred securities outstanding at December 31, 2016 were redeemed effective January 18, 2017 and therefore were not included in the computation of diluted earnings per share for the three months ended September 30, 2017, but were dilutive for the nine months ended September 30, 2017 and therefore were included in the computation of diluted earnings per share for that period. The $15.8 million in trust preferred securities outstanding at September 30, 2016 were dilutive for the three and nine months ended September 30, 2016 and therefore were included in the computation of diluted earnings per share for those periods.