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Earnings Per Common Share
 3 Months Ended
Mar. 31, 2015
Earnings Per Share [Abstract]  
Earnings Per Common Share
Earnings Per Common Share

The Corporation calculates earnings per common share (EPS) using the two-class method. The two-class method allocates net income to each class of Common Stock and participating security according to the common dividends declared and participation rights in undistributed earnings. Participating securities consist of unvested stock-based payment awards that contain nonforfeitable rights to dividends. The Corporation also uses the treasury stock method to calculate dilutive EPS. The treasury stock method assumes that the Corporation uses the proceeds from a hypothetical exercise of options to repurchase Common Stock at the average market price during the period. The reconciliation between basic and diluted earnings per share is presented as follows:
 
Three Months Ended March 31,
 
2015
 
2014
Basic EPS
(Dollars in thousands, except per share data)
Net income
$
1,847

 
$
1,606

Less:
 
 
 
Preferred stock dividend and accretion
—

 
35

Income allocated to participating securities
4

 
6

Net income allocated to common shareholders
$
1,843

 
$
1,565

 
 
 
 
Average common shares outstanding
9,659,079

 
9,668,297

Less: participating shares included in average common shares outstanding
19,199

 
53,169

Average common shares outstanding used in basic EPS
9,639,880

 
9,615,128

Basic net income per common share
$
0.19

 
$
0.16

 
 
 
 
Diluted EPS:
 
 
 
Income used in diluted earnings per share calculation
$
1,843

 
$
1,565

 
 
 
 
Average common shares outstanding
9,639,880

 
9,615,128

Add: Common Stock equivalents
 
 
 
Stock Options
98,714

 
37,135

Average common stock shares outstanding
9,738,594

 
9,652,263

Diluted earnings per common share
$
0.19

 
$
0.16



For the three month period ended March 31, 2015, options to purchase approximately 30,000 shares of common stock were not included in the computation of diluted earnings per share because the effect would be antidilutive. For the three month period ended March 31, 2014, options to purchase approximately 172,000 shares of common stock were not included in the computation of diluted earnings per share because the effect would be antidilutive.