Earnings per Share

12 Months Ended

Dec. 31, 2016

13. 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 and performance share unit holders participate in dividends (through dividend equivalents, in the case of the RSUs and performance share units). 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.



		2016		2015		2014
Basic earnings per common share
Net income	$	39,009	$	44,176	$	39,961
Less income allocated to participating securities		540		604		609
Net income allocated to common shareholders	$	38,469	$	43,572	$	39,352
Weighted average common shares outstanding		22,480,679		22,329,044		22,168,500
	$	1.71	$	1.95	$	1.78
Earnings per common share assuming dilution
Net income	$	39,009	$	44,176	$	39,961
Less income allocated to participating securities		540		604		609
Net income allocated to common shareholders	$	38,469	$	43,572	$	39,352
Weighted average common shares outstanding		22,480,679		22,329,044		22,168,500
Incremental shares applicable to stock based compensation		-		12,731		20,346
Weighted average common shares assuming dilution		22,480,679		22,341,775		22,188,846
	$	1.70	$	1.94	$	1.77