EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2018

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 months ended March 31, 2018 and 2017:

	Three Months Ended
	March 31,
(In thousands, except per share data)	2018			2017
Net income	$	12,073		$	9,171
Dividends paid on and earnings allocated to participating securities		(253	)		(178	)
Income attributable to common stock	$	11,820		$	8,993
Weighted average common shares outstanding, including participating securities		19,834			19,669
Weighted average participating securities		(421	)		(392	)
Weighted average common shares outstanding		19,413			19,277
Basic earnings per common share	$	0.61		$	0.47
Income attributable to common stock	$	11,820		$	8,993
Weighted average common shares outstanding		19,413			19,277
Incremental shares from assumed conversions of options and restricted stock units		25			19
Weighted average common and equivalent shares outstanding		19,438			19,296
Diluted earnings per common share	$	0.61		$	0.47

There were 47,393 stock options outstanding at March 31, 2018 that were not included in the computation of diluted earnings per share for the three months ended March 31, 2018 because the options’ exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were no stock options outstanding at March 31, 2017.

There were 21,693 and 19,957 restricted stock units that were antidilutive for the three months ended March 31, 2018 and 2017, respectively.