Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

Stock options, where the exercise price was greater than the average market price of the common shares, were excluded from the computation of diluted earnings per common share because the result would have been antidilutive. There were no stock options outstanding as of March 31, 2016 and 2015.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share.



	Three Months Ended March 31,
(Dollars in thousands - except per share amounts)	2016		2015
Distributed earnings allocated to common stock	$	4,686	$	4,296
Undistributed earnings allocated to common stock	9,017		9,063
Net earnings allocated to common stock	13,703		13,359
Net earnings allocated to participating securities	115		152
Net income allocated to common stock and participating securities	$	13,818	$	13,511

Weighted average shares outstanding for basic earnings per common share*	25,923,530		26,258,273
Dilutive effect of stock compensation	—		—
Weighted average shares outstanding for diluted earnings per common share*	25,923,530		26,258,273

Basic earnings per common share*	$	0.53	$	0.51
Diluted earnings per common share*	$	0.53	$	0.51

*Three months ended March 31, 2015 outstanding shares and per common share figures have been adjusted for 10% stock dividend declared July 22, 2015 and issued on August 14, 2015.