EARNINGS PER SHARE

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2017 and 2016:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In thousands, except per share data)	2017			2016			2017			2016
Net Income	$	8,841		$	8,854		$	18,012		$	17,480
Dividends paid on and earnings allocated to participating securities		(182	)		(181	)		(360	)		(351	)
Income attributable to common stock	$	8,659		$	8,673		$	17,652		$	17,129
Weighted average common shares outstanding, including participating securities		19,781			17,507			19,725			17,493
Weighted average participating securities		(410	)		(358	)		(401	)		(356	)
Weighted average common shares outstanding		19,371			17,149			19,324			17,137
Basic earnings per common share	$	0.45		$	0.51		$	0.91		$	1.00
Income attributable to common stock	$	8,659		$	8,673		$	17,652		$	17,129
Impact of assumed conversions - interest on 8.5% trust preferred securities		-			223			32			444
Income attributable to common stock including assumed conversions	$	8,659		$	8,896		$	17,684		$	17,573
Weighted average common shares outstanding		19,371			17,149			19,324			17,137
Incremental shares from assumed conversions of options and restricted stock units		23			14			20			9
Incremental shares from assumed conversions of 8.5% trust preferred securities		-			530			35			523
Weighted average common and equivalent shares outstanding		19,394			17,693			19,379			17,669
Diluted earnings per common share	$	0.45		$	0.50		$	0.91		$	0.99

There were no stock options outstanding for the six months ended June 30, 2017. There were no stock options that were antidilutive for the six months ended June 30, 2016. There were no restricted stock units that were antidilutive for the three months ended June 30, 2017 and 2016. There were 20,084 and 25,001 restricted stock units that were antidilutive for the six months ended June 30, 2017 and 2016, respectively. The $15.7 million in trust preferred securities outstanding at December 31, 2016 were redeemed effective January 18, 2017 and therefore were not included in the computation of diluted earnings per share for the three months ended June 30, 2017, but were dilutive for the six months ended June 30, 2017 and therefore were included in the computation of diluted earnings per share for that period. The $16.0 million in trust preferred securities outstanding at June 30, 2016 were dilutive for the three and six months ended June 30, 2016 and therefore were included in the computation of diluted earnings per share for those periods.