Earnings Per Share

6 Months Ended

Jun. 30, 2016

2) Earnings Per Share

Basic earnings per common share is computed by dividing net income, less dividends and discount accretion on preferred stock, by the weighted average common shares outstanding. The Series C Preferred Stock participates in the earnings of the Company and, therefore, the shares issued on the conversion of the Series C Preferred Stock are considered outstanding under the two class method of computing basic earnings per common share during periods of earnings. Diluted earnings per share reflect potential dilution from outstanding stock options using the treasury stock method. A reconciliation of these factors used in computing basic and diluted earnings per common share is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(Dollars in thousands, except per share amounts)
Net income available to common shareholders	$	6,791		$	4,029		$	12,393		$	7,719
Less: undistributed earnings allocated to Series C Preferred Stock		(576	)		(331	)		(979	)		(605	)

Distributed and undistributed earnings allocated to common shareholders	$	6,215		$	3,698		$	11,414		$	7,114


Weighted average common shares outstanding for basic earnings per common share		32,243,935			26,573,909			32,184,825			26,541,816
Dilutive effect of stock options oustanding, using the the treasury stock method		268,676			193,346			260,691			182,444

Shares used in computing diluted earnings per common share		32,512,611			26,767,255			32,445,516			26,724,260


Basic earnings per share	$	0.19		$	0.14		$	0.35		$	0.27
Diluted earnings per share	$	0.19		$	0.14		$	0.35		$	0.27