EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2015

3.	EARNINGS PER SHARE

Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. The basic and diluted calculations differ as a result of the dilutive effect of stock options and time lapse restricted shares included in diluted earnings per share, but excluded from basic earnings per share. The Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities.

A reconciliation of weighted average shares outstanding is as follows:

	Three months ended March 31,
(In thousands except per share data )	2015			2014
Net income available for stockholders	$	2,929		$	1,978
Less: Dividends paid		(1,532	)		(1,145	)
Undistributed earnings	$	1,397		$	833

Basic shares outstanding:
Common stock		35,784			35,746
Restricted shares of common stock		1,244			1,212
		37,028			36,958
Diluted shares outstanding:
Common stock		35,784			35,746
Dilutive effect of stock based awards		236			297
		36,020			36,043
Restricted shares of common stock		1,244			1,212
		37,264			37,255

Inclusion of all participating securities in the computation of Earnings Per Share (EPS) under the two-class method had no impact on the Basic EPS amounts reported.

The effect of the Company’s stock options as shown below have been excluded from the computation of diluted earnings per share for the following periods, as their effect would have been anti-dilutive:

	Three months ended March 31,		Three months ended March 31,
(in thousands)	2015	2014	2015	2014
Stock options	-	42	-	42

- Definition

The entire disclosure for earnings per share.

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