Earnings Per Share

9 Months Ended

Sep. 30, 2016

EARNINGS PER SHARE

The computations of basic and diluted earnings per share follow:



	For the Three Months Ended September 30,
	2016					2015
Dollars in thousands, except per share amounts	Income (Numerator)		Common Shares (Denominator)	Per Share		Income (Numerator)		Common Shares (Denominator)	Per Share
Net income	$	4,281				$	3,661

Basic EPS	$	4,281	10,692,423	$	0.40	$	3,661	10,703,526	$	0.34

Effect of dilutive securities:
Stock options			12,865					8,677
Stock appreciation rights			21,851					—

Diluted EPS	$	4,281	10,727,139	$	0.40	$	3,661	10,712,203	$	0.34



	For the Nine Months Ended September 30,
	2016					2015
Dollars in thousands, except per share amounts	Income (Numerator)		Common Shares (Denominator)	Per Share		Income (Numerator)		Common Shares (Denominator)	Per Share
Net income	$	12,586				$	11,956

Basic EPS	$	12,586	10,682,129	$	1.18	$	11,956	10,069,374	$	1.19

Effect of dilutive securities:
Stock options			8,774					8,608
Stock appreciation rights			1,443					—
Series 2011 convertible preferred stock	—		—			—		381,859
Series 2009 convertible preferred stock	—		—			—		168,298

Diluted EPS	$	12,586	10,692,346	$	1.18	$	11,956	10,628,139	$	1.12

Stock option and stock appreciation right (SAR) grants and the convertible preferred shares are disregarded in this computation if they are determined to be anti-dilutive. Our anti-dilutive stock options for the quarter and nine months ended September 30, 2016 were 33,600 shares and 57,000 shares respectively, and totaled 128,900 shares for both the quarter and nine months ended September 30, 2015. Our anti-dilutive SARs for both the three and nine months ended September 30, 2015 were 166,717.