2 - EARNINGS PER SHARE

The following table sets forth the calculation of basic and diluted earnings per share (“EPS”) for the periods indicated.



	Six Months Ended				Three Months Ended
	June 30,				June 30,
(dollars in thousands, except per share data)	2018		2017		2018		2017
Net income	$	21,426	$	18,214	$	10,315	$	9,133
Income allocated to participating securities (1)		60		68		23		34
Income allocated to common stockholders	$	21,366	$	18,146	$	10,292	$	9,099

Weighted average:
Common shares		25,149,364		23,975,687		25,334,155		24,091,447
Dilutive stock options and restricted stock units (1)		188,918		257,063		173,661		249,901
		25,338,282		24,232,750		25,507,816		24,341,348
Earnings per share:
Basic		$.85		$.76		$.41		$.38
Diluted		.84		.75		.40		.37

(1) Restricted stock units (“RSUs”) awarded in 2016 accrue dividends at the same rate as the dividends declared by the Board of Directors on the Corporation’s common stock. For purposes of computing EPS, these RSUs are considered to participate with common stock in the earnings of the Corporation and, therefore, the Corporation calculates basic and diluted EPS using the two-class method. Under the two-class method, net income for the period is allocated between common stockholders and participating securities according to dividends declared and participation rights in undistributed earnings. As a result, the RSUs awarded in 2016 are not included in the weighted average “dilutive stock options and restricted stock units” in the table above.