Earnings per Share

9 Months Ended

Sep. 30, 2016

The following table sets forth the computation of basic and diluted earnings per share using the two class method (in thousands, except per share data):



	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Distributed earnings allocated to common stock	$	6,376	$	6,362	$	19,128	$	19,086
Undistributed earnings allocated to common stock	6,699		4,125		17,901		21,040
Net earnings allocated to common shareholders	$	13,075	$	10,487	$	37,029	$	40,126

Average shares outstanding	14,899		15,178		14,902		15,111
Effect of dilutive securities:
Warrants outstanding	—		—		—		37
Employee stock awards	11		20		11		21
Shares for diluted earnings per share	14,910		15,198		14,913		15,169

Basic earnings per share	$	0.88	$	0.69	$	2.48	$	2.66
Diluted earnings per share	$	0.88	$	0.69	$	2.48	$	2.65

During the three and nine months ended September 30, 2015 there were no anti-dilutive options outstanding. Options to purchase approximately 3,000 shares and 5,000 shares of common stock were outstanding during the three and nine months ended September 30, 2016, respectively, but were not included in the computation of diluted earnings per share because the effect of the options' exercises would have been anti-dilutive.