EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

EARNINGS PER SHARE

EARNINGS PER SHARE

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 September 30,						Nine months ended September 30,
(In thousands except per share data )	2015			2014			2015			2014
Net income available for stockholders	$	3,103		$	1,882		$	10,461		$	6,873
Less:  Dividends paid		(1,525	)		(1,144	)		(4,588	)		(3,435	)
Undistributed earnings	$	1,578		$	738		$	5,873		$	3,438
Basic shares outstanding:
Common stock		35,634			35,642			35,731			35,710
Restricted shares of common stock		1,255			1,262			1,251			1,240
		36,889			36,904			36,982			36,950
Diluted shares outstanding:
Common stock		35,634			35,642			35,731			35,710
Dilutive effect of stock based awards		91			286			181			286
		35,725			35,928			35,912			35,996
Restricted shares of common stock		1,255			1,262			1,251			1,240
		36,980			37,190			37,163			37,236

Earnings per share attributable to common stock and restricted shares of common stock (participating securities) is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Basic earnings per share
Common stock	$	0.08	$	0.05	$	0.28	$	0.19
Restricted shares of common stock		0.08		0.05		0.27		0.18