Earnings Per Common Share

9 Months Ended

Sep. 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 nine month periods ending September 30, 2015 and 2014, there were no average anti-dilutive employee share-based awards (all shares and earnings per share amounts have been adjusted to reflect the 2-for-1 stock split in the form of a 100% stock dividend completed in August 2015).



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
	(Dollars in Thousands, Except Per Share Data)
Basic earnings per common share
Net income	$	4,381	$	3,553	$	12,431	$	10,395
Less: earnings allocated to participating securities	68		75		206		222
Basic earnings allocated to common shareholders	$	4,313	$	3,478	$	12,225	$	10,173

Weighted-average common shares outstanding, excluding participating securities	8,546,563		7,739,918		8,538,219		7,727,300

Basic earnings per common share	$	0.50	$	0.45	$	1.43	$	1.32

Diluted earnings per common share
Earnings allocated to common shareholders	$	4,313	$	3,478	$	12,225	$	10,173
Reallocation of undistributed earnings	—		—		—		1
Diluted earnings allocated to common shareholders	$	4,313	$	3,478	$	12,225	$	10,174

Weighted-average common shares outstanding, excluding participating securities	8,546,563		7,739,918		8,538,219		7,727,300
Dilutive effect of share-based awards	—		43,694		1,486		44,185
Weighted-average diluted common shares outstanding, excluding participating securities	8,546,563		7,783,612		8,539,705		7,771,485

Diluted earnings per common share	$	0.50	$	0.45	$	1.43	$	1.31