EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

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

	Three Months Ended,						Nine Months Ended,
	September 30,						September 30,
(In thousands, except per share data)	2015			2014			2015			2014
Net Income	$	7,890		$	4,871		$	13,116		$	9,595
Less: Dividends paid on and earnings allocated to participating securities		(149	)		(119	)		(295	)		(218	)
Income attributable to common stock	$	7,741		$	4,752		$	12,821		$	9,377
Weighted average common shares outstanding, including participating securities		17,426			11,674			13,901			11,616
Less: weighted average participating securities		(330	)		(284	)		(315	)		(276	)
Weighted average common shares outstanding		17,096			11,390			13,586			11,340
Basic earnings per common share	$	0.45		$	0.42		$	0.94		$	0.83
Income attributable to common stock	$	7,741		$	4,752		$	12,821		$	9,377
Weighted average common shares outstanding		17,096			11,390			13,586			11,340
Weighted average common equivalent shares outstanding		6			—			4			—
Weighted average common and equivalent shares outstanding		17,102			11,390			13,590			11,340
Diluted earnings per common share	$	0.45		$	0.42		$	0.94		$	0.83

There were 41,100 options outstanding at September 30, 2014 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. There were no stock options that were antidilutive at September 30, 2015. The $16.0 million in convertible trust preferred securities outstanding at September 30, 2015 and September 30, 2014 were not included in the computation of diluted earnings per share because the assumed conversion of the trust preferred securities was antidilutive.