Earnings Per Share

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and 2019.

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 March 31,
(Dollars in thousands - except per share amounts)	2020		2019
Distributed earnings allocated to common stock	$	7,399	$	6,966
Undistributed earnings allocated to common stock	8,941		15,102
Net earnings allocated to common stock	16,340		22,068
Net earnings allocated to participating securities	73		128
Net income allocated to common stock and participating securities	$	16,413	$	22,196

Weighted average shares outstanding for basic earnings per common share	25,523,356		25,759,186
Dilutive effect of stock compensation	—		—
Weighted average shares outstanding for diluted earnings per common share	25,523,356		25,759,186

Basic earnings per common share	$	0.64	$	0.86
Diluted earnings per common share	$	0.64	$	0.86