EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2015

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 computation of EPS for the three and six months ended June 30, 2015 and 2014 is as follows:

	Three Months Ended,						Six Months Ended,
	June 30,						June 30,
(In thousands, except per share data)	2015			2014			2015			2014
Net Income	$	463		$	4,318		$	5,226		$	4,724
Less: Dividends paid on and earnings allocated to participating securities		(16	)		(103	)		(131	)		(101	)
Income attributable to common stock	$	447		$	4,215		$	5,095		$	4,623

Weighted average common shares outstanding, including participating securities		12,488			11,660			12,106			11,587
Less: weighted average participating securities		(305	)		(279	)		(303	)		(271	)
Weighted average common shares outstanding		12,183			11,381			11,803			11,316
Basic earnings per common share	$	0.04		$	0.37		$	0.43		$	0.41

Income attributable to common stock	$	447		$	4,215		$	5,095		$	4,623

Weighted average common shares outstanding		12,183			11,381			11,803			11,316
Weighted average common equivalent shares outstanding		3			-			3			-
Weighted average common and equivalent shares outstanding		12,186			11,381			11,806			11,316
Diluted earnings per common share	$	0.04		$	0.37		$	0.43		$	0.41

There were 34,739 and 42,330 options outstanding at June 30, 2015 and June 30, 2014, 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 June 30, 2015 and June 30, 2014 were not included in the computation of diluted earnings per share because the assumed conversion of the trust preferred securities was antidilutive.