Common Stock and Earnings per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Common Stock and Earnings per Share

Note 9

Common Stock and Earnings per Share

The table below shows activity in the outstanding shares of the Company’s common stock during 2019.

	2019
Shares outstanding at January 1	14,611,286
Issuance of common stock:
Employee restricted stock grants	18,121
Employee SARs exercised	27,274
Directors’ compensation	12,278
Shares repurchased	(154,593	)
Shares outstanding at December 31	14,514,366

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. Under the treasury stock method, stock appreciation rights (“SARs”) are dilutive when the average market price of the Company’s common stock, combined with the effect of any unamortized compensation expense, exceeds the SAR price during a period. Anti-dilutive shares are those SARs with prices in excess of the current market value.

The calculations of basic and diluted earnings per share are as follows:

	December 31,
(In thousands except share and per share data)	2019		2018		2017
Basic:
Net income	$	30,404	$	30,268	$	25,014
Weighted average common shares outstanding		14,434,445		14,675,136		14,700,558
Basic earnings per share	$	2.11	$	2.06	$	1.70
Diluted:
Net income	$	30,404	$	30,268	$	25,014
Weighted average common shares outstanding		14,434,445		14,675,136		14,700,558
Effect of dilutive restricted stock, performance based restricted stock (“PBRS”), and SARs		257,480		239,066		215,332
Weighted average common shares outstanding assuming dilution		14,691,925		14,914,202		14,915,890
Diluted earnings per share	$	2.07	$	2.03	$	1.68