Earnings per Share

12 Months Ended

Dec. 31, 2014

Earnings per Share

Earnings per Share

14. Earnings Per Share

Basic earnings per share of common stock is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income by the weighted average number of common shares and common stock equivalents related to the assumed exercise of stock options, using the two‑class method. Stock options for which the exercise price exceeds the average fair value have an anti‑dilutive effect on earnings per share and are excluded from the calculation. There were no shares excluded from diluted earnings per share for the years presented.

All restricted stockholders and RSU holders participate in dividends. Thus, the Company has calculated earnings per share pursuant to the two‑class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends.

		2014		2013		2012
Basic earnings per common share
Net income	$	39,961	$	11,639	$	6,012
Less income allocated to participating securities		609		179		69
Net income allocated to common shareholders	$	39,352	$	11,460	$	5,943
Weighted average common shares outstanding		22,168,500		22,029,374		21,894,569
	$	1.78	$	0.52	$	0.27
Earnings per common share assuming dilution
Net income	$	39,961	$	11,639	$	6,012
Less income allocated to participating securities		609		179		69
Net income allocated to common shareholders	$	39,352	$	11,460	$	5,943
Weighted average common shares outstanding		22,168,500		22,029,374		21,894,569
Incremental shares applicable to stock based compensation		20,346		37,800		69,742
Weighted average common shares assuming dilution		22,188,846		22,067,174		21,964,311
	$	1.77	$	0.51	$	0.26