EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2017

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, 2017 and 2016:

	Three months ended,
	March 31,
(In thousands, except per share data)	2017			2016
Net income	$	9,171		$	8,626
Dividends paid on and earnings allocated to participating securities		(178	)		(170	)
Income attributable to common stock	$	8,993		$	8,456
Weighted average common shares outstanding, including participating securities		19,669			17,479
Weighted average participating securities		(392	)		(353	)
Weighted average common shares outstanding		19,277			17,126
Basic earnings per common share	$	0.47		$	0.49
Income attributable to common stock	$	8,993		$	8,456
Weighted average common shares outstanding		19,277			17,126
Incremental shares from assumed conversions of options and restricted stock units		19			11
Weighted average common and equivalent shares outstanding		19,296			17,137
Diluted earnings per common share	$	0.47		$	0.49

There were no stock options outstanding at March 31, 2017. There were no stock options that were antidilutive for the three months ended March 31, 2016. There were 19,957 and 24,814 restricted stock units that were antidilutive for the three months ended March 31, 2017 and 2016, respectively. The $16.0 million in trust preferred securities outstanding at March 31, 2016 were not included in the computation of diluted EPS for the three months ended March 31, 2016 because the assumed conversion of the trust preferred securities was antidilutive during that period. The trust preferred securities were redeemed effective January 18, 2017.