Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

(a) Earnings Per Common Share

The following table illustrates the reconciliation of weighted average shares used for earnings per common share computations for the years ended December 31, 2014, 2013 and 2012:

	Years Ended   December 31,
	2014			2013			2012
	(Dollars in thousands)
Net income:
Net income	$	21,014		$	9,575		$	13,261
Less: Dividends and undistributed earnings allocated to participating securities	(163		)	(118		)	(162		)
Net income allocated to common stockholders	$	20,851		$	9,457		$	13,099
Basic:
Weighted average common shares outstanding	25,641,229			15,667,912			15,262,452
Less: Restricted stock awards	(210,690		)	(191,677		)	(182,303		)
Total basic weighted average common shares outstanding	25,430,539			15,476,235			15,080,149
Diluted:
Basic weighted average common shares outstanding	25,430,539			15,476,235			15,080,149
Incremental shares from stock options	46,750			11,480			14,640
Total diluted weighted average common shares outstanding	25,477,289			15,487,715			15,094,789

Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For the years ended December 31, 2014, 2013 and 2012 anti-dilutive shares outstanding related to options to acquire common stock totaled 20,768, 163,863 and 249,215, respectively, as the assumed proceeds from exercise price, tax benefits and future compensation was in excess of the market value.

(b) Dividends

The timing and amount of cash dividends paid on the Company's common stock depends on the Company’s earnings, capital requirements, financial condition and other relevant factors. Dividends on common stock from the Company depend substantially upon receipt of dividends from the Bank, which is the Company’s predominant source of income. The following table summarizes the dividend activity for the years ended December 31, 2014, 2013 and 2012.

Declared	Cash Dividend per Share	Record Date	Paid Date
February 1, 2012	$0.06	February 10, 2012	February 24, 2012
April 26, 2012	$0.08	May 10, 2012	May 24, 2012
June 26, 2012	$0.20	July 10, 2012	July 24, 2012
July 25, 2012	$0.08	August 14, 2012	August 24, 2012
October 30, 2012	$0.08	November 9, 2012	November 21, 2012
November 30, 2012	$0.30	November 26, 2012	December 6, 2012
January 30, 2013	$0.08	February 8, 2013	February 22, 2013
April 24, 2013	$0.08	May 10, 2013	May 24, 2013
July 23, 2013	$0.18	August 6, 2013	August 15, 2013
October 23, 2013	$0.08	November 5, 2013	November 15, 2013
January 29, 2014	$0.08	February 10, 2014	February 24, 2014
March 27, 2014	$0.08	April 8, 2014	April 23, 2014
July 24, 2014	$0.09	August 7, 2014	August 21, 2014
October 23, 2014	$0.09	November 6, 2014	November 20, 2014
November 11, 2014	$0.16	December 2, 2014	December 12, 2014

The FDIC and the Washington State Department of Financial Institutions, Division of Banks have the authority under their supervisory powers to prohibit the payment of dividends by the Bank to the Company. Additionally, current guidance from the Board of Governors of the Federal Reserve System ("Federal Reserve Board") provides, among other things, that dividends per share on the Company’s common stock generally should not exceed earnings per share, measured over the previous four fiscal quarters. Current regulations allow the Company and the Bank to pay dividends on their common stock if the Company’s or the Bank’s regulatory capital would not be reduced below the statutory capital requirements set by the Federal Reserve Board and the FDIC.

(c) Stock Repurchase Program

The Company has had various stock repurchase programs since March 1999. On October 23, 2014, the Company's Board of Directors authorized the repurchase of up to 5% of the Company's outstanding common shares, or approximately 1,513,000 shares, under the eleventh stock repurchase plan. The number, timing and price of shares repurchased will depend on business and market conditions, and other factors, including opportunities to deploy the Company's capital. The Company will not repurchase the remaining 52,025 shares available under the tenth plan described below as the eleventh plan supersedes the tenth stock repurchase program.

On August 30, 2012, the Board of Directors approved the Company’s tenth stock repurchase plan, authorizing the repurchase of up to 5% of the Company’s outstanding shares of common stock, or approximately 757,000 shares. On August 30, 2011, the Board of Director approved the Company's ninth stock repurchase plan, authorizing the repurchase of up to 5% of the Company's outstanding shares of common stock, or approximately 782,000 shares over a period of twelve months.

The following table provides total repurchased shares and average share prices under the applicable Plans and years indicated:

	Years Ended December 31,
	2014		2013		2012		Plan Total
Ninth Plan
Repurchased shares	—		—		389,627		590,832
Stock repurchase average share price	$	—	$	—	$	13.45	$	12.83
Tenth Plan
Repurchased shares	108,075		544,000		52,900		704,975
Stock repurchase average share price	$	16.68	$	15.88	$	13.88	$	15.85
Eleventh Plan
Repurchased shares	—		—		—		—
Stock repurchase average share price	$	—	$	—	$	—	$	—

During the years ended December 31, 2014, 2013 and 2012, the Company repurchased 48,304, 13,138 and 3,419 shares at an average price of $16.53, $14.29 and $14.08 to pay withholding taxes on the vesting of restricted stock that vested during the years ended December 31, 2014, 2013 and 2012, respectively, which are not considered repurchased as part of the applicable Plans.

(d) Issuance of Common Stock

The Washington Banking Merger was effective on May 1, 2014. In conjunction with the merger was the issuance of 14,000,178 shares of the Company's common stock at a fair value of $226.2 million. The Valley Acquisition was effective on July 15, 2013. In conjunction with this acquisition was the issuance of 1,533,267 shares of the Company's stock at a fair value of $24.2 million.