Earnings per Common Share

12 Months Ended

Dec. 31, 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.

Effective November 1, 2014, the Corporation successfully completed the acquisition of Aslin Group, Inc. and Alterra. Under the terms of the definitive agreement, the Corporation issued 720,162 shares, on a post-split basis, to Aslin Group, Inc. shareholders as the stock portion of the consideration paid. This stock issuance impacted the Corporation’s earnings per share by increasing the number of shares outstanding.

For the year ended December 31, 2015, there were no average anti-dilutive employee share-based awards. For the year ended December 31, 2014, there were four 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 Year Ended December 31,
		2015		2014		2013
	(Dollars in Thousands, Except Share Data)
Basic earnings per common share
Net income		$	16,514	$	14,139	$	13,746
Less: earnings allocated to participating securities		273		294		331
Basic earnings allocated to common shareholders		$	16,241	$	13,845	$	13,415

Weighted-average common shares outstanding, excluding participating securities		8,549,176		7,869,956		7,664,620

Basic earnings per common share		$	1.90	$	1.76	$	1.75

Diluted earnings per common share
Earnings allocated to common shareholders		$	16,241	$	13,845	$	13,415
Reallocation of undistributed earnings		—		1		2
Diluted earnings allocated to common shareholders		$	16,241	$	13,846	$	13,417

Weighted-average common shares outstanding, excluding participating securities		8,549,176		7,869,956		7,664,620
Dilutive effect of share-based awards		1,146		36,811		30,168
Weighted-average diluted common shares outstanding, excluding participating securities		8,550,322		7,906,767		7,694,788

Diluted earnings per common share		$	1.90	$	1.75	$	1.74