Earnings Per Common Share

6 Months Ended

Jun. 30, 2016

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, or dividend equivalents, 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.

There were no anti-dilutive employee share-based awards for the three and six month periods ended June 30, 2016 and 2015.



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
	(Dollars in Thousands, Except Per Share Data)
Basic earnings per common share
Net income	$	3,716	$	3,858	$	8,262	$	8,050
Less: earnings allocated to participating securities	58		65		128		138
Basic earnings allocated to common shareholders	$	3,658	$	3,793	$	8,134	$	7,912

Weighted-average common shares outstanding, excluding participating securities	8,566,718		8,522,254		8,565,933		8,522,436

Basic earnings per common share	$	0.43	$	0.45	$	0.95	$	0.93

Diluted earnings per common share
Earnings allocated to common shareholders, diluted	$	3,658	$	3,793	$	8,134	$	7,912

Weighted-average common shares outstanding, excluding participating securities	8,566,718		8,522,254		8,565,933		8,522,436
Dilutive effect of share-based awards	—		—		—		1,121
Weighted-average diluted common shares outstanding, excluding participating securities	8,566,718		8,522,254		8,565,933		8,523,557

Diluted earnings per common share	$	0.43	$	0.45	$	0.95	$	0.93