Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share

Earnings Per Share

Note 9.       Earnings Per Share

Earnings per common share is computed using the two-class method.  Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities.  Participating securities include non-vested restricted stock awards.  Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock.  Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.  Stock options, where the exercise price was greater than the average market price of the common shares, were excluded from the computation of diluted earnings per common share because the result would have been antidilutive.  There were no stock options outstanding as of June 30, 2013.  No stock options were considered antidilutive as of June 30, 2012.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands - except per share amounts)	2013		2012		2013		2012
Distributed earnings allocated to common stock	$	4,140	$	3,881	$	8,283	$	7,772
Undistributed earnings allocated to common stock	9,618		8,515		17,719		16,166
Net earnings allocated to common stock	13,758		12,396		26,002		23,938
Net earnings allocated to participating securities	184		171		344		344
Net income allocated to common stock and participating securities	$	13,942	$	12,567	$	26,346	$	24,282
Weighted average shares outstanding for basic earnings per common share	24,367,529		24,263,881		24,344,882		24,261,649
Dilutive effect of stock compensation	1,444		10,017		1,171		10,774
Weighted average shares outstanding for diluted earnings per common share	24,368,973		24,273,898		24,346,053		24,272,423
Basic earnings per common share	$	0.56	$	0.51	$	1.07	$	0.99
Diluted earnings per common share	$	0.56	$	0.51	$	1.07	$	0.99