EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2016

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, 2016 and 2015:

	Three months ended,						Nine months ended
	September 30,						September 30,
(In thousands, except per share data)	2016			2015			2016			2015
Net income	$	8,851		$	7,890		$	26,331		$	13,116
Dividends paid on and earnings allocated to participating securities		(188	)		(149	)		(542	)		(295	)
Income attributable to common stock	$	8,663		$	7,741		$	25,789		$	12,821

Weighted average common shares outstanding, including participating securities		17,537			17,426			17,511			13,901
Weighted average participating securities		(372	)		(330	)		(365	)		(315	)
Weighted average common shares outstanding		17,165			17,096			17,146			13,586
Basic earnings per common share	$	0.50		$	0.45		$	1.50		$	0.94

Income attributable to common stock	$	8,663		$	7,741		$	25,789		$	12,821
Impact of assumed conversions - interest on 8.5% trust preferred securities		219			-			661			-
Income attributable to common stock including assumed conversions	$	8,882		$	7,741		$	26,450		$	12,821

Weighted average common shares outstanding		17,165			17,096			17,146			13,586
Incremental shares from assumed conversions of options and restricted stock units		15			6			11			4
Incremental shares from assumed conversions of 8.5% trust preferred securities		546			-			531			-
Weighted average common and equivalent shares outstanding		17,726			17,102			17,688			13,590
Diluted earnings per common share	$	0.50		$	0.45		$	1.50		$	0.94

There were no stock options that were antidilutive at September 30, 2016 and 2015. The $15.8 million in convertible 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 EPS for those periods. The $16.0 million in convertible trust preferred securities outstanding at September 30, 2015 were not included in the computation of diluted EPS for the three and nine months ended September 30, 2015 because the assumed conversion of the trust preferred securities was antidilutive during those periods.