Earnings Per Share

9 Months Ended

Sep. 30, 2019

Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

Stock options, where the exercise price was greater than the average market price of the common shares, were excluded from the computation of diluted earnings per common share because the result would have been antidilutive. There were no stock options outstanding as of September 30, 2019 and 2018.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share.



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands - except per share amounts)	2019		2018		2019		2018
Distributed earnings allocated to common stock	$	6,895	$	6,491	$	20,791	$	18,420
Undistributed earnings allocated to common stock	17,402		13,272		48,827		42,141
Net earnings allocated to common stock	24,297		19,763		69,618		60,561
Net earnings allocated to participating securities	141		125		401		407
Net income allocated to common stock and participating securities	$	24,438	$	19,888	$	70,019	$	60,968

Weighted average shares outstanding for basic earnings per common share	25,520,035		25,965,694		25,630,771		25,958,125
Dilutive effect of stock compensation	—		—		—		—
Weighted average shares outstanding for diluted earnings per common share	25,520,035		25,965,694		25,630,771		25,958,125

Basic earnings per common share	$	0.95	$	0.76	$	2.72	$	2.33
Diluted earnings per common share	$	0.95	$	0.76	$	2.72	$	2.33