Earnings Per Share

9 Months Ended

Sep. 30, 2021

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, 2021 and 2020.

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)	2021		2020		2021		2020
Distributed earnings allocated to common stock	$	7,749	$	7,166	$	22,681	$	21,714
Undistributed earnings allocated to common stock	24,472		12,755		67,422		32,941
Net earnings allocated to common stock	32,221		19,921		90,103		54,655
Net earnings allocated to participating securities	262		137		708		318
Net income allocated to common stock and participating securities	$	32,483	$	20,058	$	90,811	$	54,973

Weighted average shares outstanding for basic earnings per common share	24,919,956		25,552,374		25,126,703		25,538,910
Dilutive effect of stock compensation	—		—		—		—
Weighted average shares outstanding for diluted earnings per common share	24,919,956		25,552,374		25,126,703		25,538,910

Basic earnings per common share	$	1.29	$	0.78	$	3.59	$	2.14
Diluted earnings per common share	$	1.29	$	0.78	$	3.59	$	2.14