NOTE 8: EARNINGS PER SHARE

Earnings per common share is computed using the two-class method prescribed by ASC 260, Earnings Per Share. Using the two-class method, basic earnings per common share is computed based upon net income divided by the weighted average number of common shares outstanding during each period, which excludes outstanding unvested restricted stock. Diluted earnings per share is computed using the weighted average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

The following table shows the computation of basic and diluted earnings per common share:



	For the three months				For the six months
	ended June 30,				ended June 30,
(Dollars in thousands, except earnings per share data)	2017		2016		2017		2016
Numerator:
Net income	$	5,818	$	5,412	$	11,097	$	7,281
Earnings allocated to participating securities		(104)		(110)		(193)		(131)
Numerator for earnings per common share	$	5,714	$	5,302	$	10,904	$	7,150

Denominator:
Denominator for basic earnings per common share		18,354,631		18,574,300		18,362,549		18,916,686
Dilutive effect of stock compensation		138,108		102,261		136,485		18,918
Denominator for diluted earnings per common share		18,492,739		18,676,561		18,499,034		18,935,604
Earnings per common share:
Basic	$	0.31	$	0.29	$	0.59	$	0.38
Diluted	$	0.31	$	0.28	$	0.59	$	0.38