Earnings Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

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
	June 30,
(Dollars in thousands, except share data)	2020			2019
Basic
Net income	$	2,416		$	3,836
Undistributed earnings allocated to participating securities		(45	)		(101	)
Net income allocated to common shares		2,371			3,735
Weighted average common shares outstanding		15,072,423			15,685,478
Basic earnings per common share	$	0.16		$	0.24
Diluted
Net income allocated to common shares	$	2,371		$	3,735
Weighted average common shares outstanding for basic earnings per common share		15,072,423			15,685,478
Add: Dilutive effects of assumed exercises of stock options		40,195			266,120
Average shares and dilutive potential common shares		15,112,618			15,951,598
Diluted earnings per common share	$	0.16		$	0.23

	Six Months Ended
	June 30,
(Dollars in thousands, except share data)	2020			2019
Basic
Net income	$	5,715		$	8,576
Undistributed earnings allocated to participating securities		(106	)		(228	)
Net income allocated to common shares		5,609			8,348
Weighted average common shares outstanding		15,279,486			15,750,905
Basic earnings per common share	$	0.37		$	0.53
Diluted
Net income allocated to common shares	$	5,609		$	8,348
Weighted average common shares outstanding for basic earnings per common share		15,279,486			15,750,905
Add: Dilutive effects of assumed exercises of stock options		54,801			255,594
Average shares and dilutive potential common shares		15,334,287			16,006,499
Diluted earnings per common share	$	0.37		$	0.52

Stock options and restricted stock awards for 222,000 shares of common stock were antidilutive for the three and six months ended June 30, 2020. No shares of common stock were antidilutive for the three and six months ended June 30, 2019.