EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2016

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 computation of EPS for the three and six months ended June 30, 2016 and 2015 is as follows:

	Three months ended,						Six months ended
	June 30,						June 30,
(In thousands, except per share data)	2016			2015			2016			2015
Net Income	$	8,854		$	463		$	17,480		$	5,226
Dividends paid on and earnings allocated to participating securities		(181	)		(16	)		(351	)		(131	)
Income attributable to common stock	$	8,673		$	447		$	17,129		$	5,095

Weighted average common shares outstanding, including participating securities		17,507			12,488			17,493			12,106
Weighted average participating securities		(358	)		(305	)		(356	)		(303	)
Weighted average common shares outstanding		17,149			12,183			17,137			11,803
Basic earnings per common share	$	0.51		$	0.04		$	1.00		$	0.43

Income attributable to common stock	$	8,673		$	447		$	17,129		$	5,095
Impact of assumed conversions - interest on 8.5% trust preferred securities		223			-			444			-
Income attributable to common stock including assumed conversions	$	8,896		$	447		$	17,573		$	5,095


Weighted average common shares outstanding		17,149			12,183			17,137			11,803
Incremental shares from assumed conversions of options and restricted stock units		14			3			9			3
Incremental shares from assumed conversions of 8.5% trust preferred securities		530			-			523			-
Weighted average common and equivalent shares outstanding		17,693			12,186			17,669			11,806
Diluted earnings per common share	$	0.50		$	0.04		$	0.99		$	0.43

There were no stock options that were antidilutive at June 30, 2016. There were 34,739 options outstanding at June 30, 2015 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 $16.0 million in convertible trust preferred securities outstanding at June 30, 2016 and 2015, 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 but were not included in the computation of diluted earnings per share for the three and six months ended June 30, 2015 because the assumed conversion of the trust preferred securities was antidilutive during those periods.