Earnings Per Share

3 Months Ended

Mar. 31, 2020

Note 17. Earnings per Share

The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shares are allocated between common shares and participating securities. The Company’s restricted stock awards are considered participating securities as the unvested awards have non-forfeitable rights to dividends, paid or unpaid, on unvested awards. The factors used in the earnings per share computation follow:

	Three Months Ended
	March 31,
(Dollars in thousands, except share data)	2020			2019
Basic
Net income	$	3,299		$	4,740
Undistributed earnings allocated to participating securities		(62	)		(127	)
Net income allocated to common shares		3,237			4,613
Weighted average common shares outstanding		15,486,549			15,817,060
Basic earnings per common share	$	0.21		$	0.29
Diluted
Net income allocated to common shares	$	3,237		$	4,613
Weighted average common shares outstanding for basic earnings per common share		15,486,549			15,817,060
Add: Dilutive effects of assumed exercises of stock options		99,706			295,665
Average shares and dilutive potential common shares		15,586,255			16,112,725
Diluted earnings per common share	$	0.21		$	0.29

No shares of common stock were antidilutive for the three months ended March 31, 2020. Stock options and restricted stock awards for 145,000 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2019 because they were antidilutive.