NOTE 6 – EARNINGS PER SHARE

The computation of basic and diluted earnings per share is shown below (dollars in thousands, except share data):


	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Basic
Net income per consolidated statements of income	$	7,683	$	7,113	$	22,271	$	19,268
Less: Earnings allocated to participating securities		(133)		(56)		(326)		(152)
Net income available to common stockholders	$	7,550	$	7,057	$	21,945	$	19,116

Weighted average common shares outstanding including participating securities		8,319,725		8,202,841		8,294,019		8,195,363
Less: Weighted average participating securities		(144,561)		(67,443)		(121,381)		(69,143)
Weighted average common shares outstanding		8,175,164		8,135,398		8,172,638		8,126,220

Basic earnings per common share	$	0.92	$	0.87	$	2.69	$	2.35

Diluted
Net income allocated to common stockholders	$	7,550	$	7,057	$	21,945	$	19,116

Weighted average common shares outstanding for basic earnings per common share		8,175,164		8,135,398		8,172,638		8,126,220
Add: Dilutive effects of assumed exercise of stock options		128,060		154,334		123,524		154,801
Add: Dilutive effects of assumed vesting of performance based restricted stock		45,746		—		43,796		—
Average shares and dilutive potential common shares		8,348,970		8,289,732		8,339,958		8,281,021

Dilutive earnings per common share	$	0.90	$	0.85	$	2.63	$	2.31

All stock options were considered in computing diluted earnings per common share for the three and nine months ended September 30, 2019 and 2018.