EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2016

EARNINGS PER SHARE

EARNINGS PER SHARE

13. EARNINGS PER SHARE

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 is a reconciliation of earnings per share for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
(In thousands, except per share data)	2016			2015			2014
Net income	$	35,491		$	21,111		$	13,763
Dividends paid on and earnings allocated to participating securities		(732	)		(451	)		(319	)
Income attributable to common stock	$	34,759		$	20,660		$	13,444
Weighted average common shares outstanding, including participating securities		17,670			14,792			11,633
Weighted average participating securities		(366	)		(319	)		(278	)
Weighted average common shares outstanding		17,304			14,473			11,355
Basic earnings per common share	$	2.01		$	1.43		$	1.18
Income attributable to common stock	$	34,759		$	20,660		$	13,444
Impact of assumed conversions - interest on 8.5% trust preferred securities		878			—			—
Income attributable to common stock including assumed conversions	$	35,637		$	20,660		$	13,444
Weighted average common shares outstanding		17,304			14,473			11,355
Incremental shares from assumed conversions of options and restricted stock units		13			4			—
Incremental shares from assumed conversions of 8.5% trust preferred securities		534			—			—
Weighted average common and equivalent shares outstanding		17,851			14,477			11,355
Diluted earnings per common share	$	2.00		$	1.43		$	1.18

There were no stock options that were antidilutive at December 31, 2016 and 2015. At December 31, 2014, there were 39,870 stock options outstanding 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 $15.7 million in convertible trust preferred securities outstanding at December 31, 2016 were dilutive for the year ended December 31, 2016 and therefore were included in the computation of diluted EPS. The $16.0 million in convertible trust preferred securities outstanding at December 31, 2015 and 2014 were not included in the computation of diluted earnings per share for the years then ended because the assumed conversion of the trust preferred securities was antidilutive during those years.