Note 3 - Earnings Per Share

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

3. Earnings Per Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the total weighted average number of common shares outstanding, which includes unvested participating securities. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and as such are included in the calculation of earnings per share. The Company’s unvested restricted stock unit awards are considered participating securities. Therefore, weighted average common shares outstanding used for computing basic earnings per common share includes common shares outstanding plus unvested restricted stock unit awards. The computation of diluted earnings per share includes the additional dilutive effect of stock options outstanding and other common stock equivalents during the period. Common stock equivalents that are anti-dilutive are not included in the computation of diluted earnings per common share. The numerator for calculating basic and diluted earnings per common share is net income available to common shareholders. The shares held in the Company’s Employee Benefit Trust are not included in shares outstanding for purposes of calculating earnings per common share.

Earnings per common share have been computed based on the following:

	For the three months ended June 30,						For the six months ended June 30,
	2016			2015			2016			2015
	(In thousands, except per share data)
Net income, as reported	$	30,435		$	14,834		$	39,996		$	23,567
Divided by:
Weighted average common shares outstanding		29,022			29,246			29,059			29,321
Weighted average common stock equivalents		12			22			14			22
Total weighted average common shares outstanding and common stock equivalents		29,034			29,268			29,073			29,343
Basic earnings per common share	$	1.05		$	0.51		$	1.38		$	0.80
Diluted earnings per common share (1)	$	1.05		$	0.51		$	1.38		$	0.80
Dividend payout ratio		16.2	%		31.4	%		24.6	%		40.0	%

(1) For the three and six months ended June 30, 2016 and 2015, there were no stock options that were anti-dilutive.