Earnings Per Common Share

6 Months Ended

Jun. 30, 2015

Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method.

For both the three and six month periods ending June 30, 2015 and 2014, there were no average anti-dilutive employee share-based awards.



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2015		2014		2015		2014
	(Dollars in Thousands, Except Per Share Data)
Basic earnings per common share
Net income	$	3,858	$	3,505	$	8,050	$	6,842
Less: earnings allocated to participating securities	65		75		138		147
Basic earnings allocated to common shareholders	$	3,793	$	3,430	$	7,912	$	6,695

Weighted-average common shares outstanding, excluding participating securities	4,261,127		3,860,087		4,261,218		3,859,795

Basic earnings per common share	$	0.89	$	0.89	$	1.86	$	1.73

Diluted earnings per common share
Earnings allocated to common shareholders	$	3,793	$	3,430	$	7,912	$	6,695
Reallocation of undistributed earnings	—		—		—		—
Diluted earnings allocated to common shareholders	$	3,793	$	3,430	$	7,912	$	6,695

Weighted-average common shares outstanding, excluding participating securities	4,261,127		3,860,087		4,261,218		3,859,795
Dilutive effect of share-based awards	—		23,268		1,121		22,203
Weighted-average diluted common shares outstanding, excluding participating securities	4,261,127		3,883,355		4,262,339		3,881,998

Diluted earnings per common share	$	0.89	$	0.88	$	1.86	$	1.72