Common Stock and Earnings per Share

12 Months Ended

Dec. 31, 2015

Common Stock and Earnings per Share [Abstract]

Note 9
Common Stock and Earnings per Share

The table below shows activity in the outstanding shares of the Company's common stock during 2015.

	2015
Shares outstanding at January 1	11,502,575
Issuance of common stock:
Employee restricted stock grants	26,542
Employee SARs exercised	12,154
Directors' compensation	7,675
Shares repurchased	(216,412	)
Shares forfeited	(262	)
Shares outstanding at December 31	11,332,272

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. Under the treasury stock method, stock appreciation rights (“SARs”) are dilutive when the average market price of the Company's common stock, combined with the effect of any unamortized compensation expense, exceeds the SAR price during a period. Anti-dilutive shares are those SARs with prices in excess of the current market value.

The calculations of basic and diluted earnings per share are as follows:

	December 31,
(In thousands except share and per share data)	2015		2014		2013
Basic
Net income	$	23,056	$	24,033	$	23,497
Weighted average common shares outstanding		11,358,609		11,479,025		11,441,158
Basic earnings per share	$	2.03	$	2.09	$	2.05
Diluted
Net income	$	23,056	$	24,033	$	23,497
Weighted average common shares outstanding		11,358,609		11,479,025		11,441,158
Effect of dilutive restricted stock and SARs		159,819		164,954		199,581
Weighted average common shares outstanding
assuming dilution		11,518,428		11,643,979		11,640,739
Diluted earnings per share	$	2.00	$	2.06	$	2.02