Earnings per Common Share

12 Months Ended

Dec. 31, 2019

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3. Earnings per Common Share

Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities.

Earnings per common share have been computed based on the following:

	Years Ended December 31,
	2019		2018		2017
	(in thousands, except per share amounts)
Net income available to common stockholders	$	73,395	$	60,352	$	43,220
Earnings allocated to participating securities		(295)		(139)		(141)
Income attributable to common stock	$	73,100	$	60,213	$	43,079
Weighted average common shares outstanding, including participating securities		35,289		32,198		31,943
Weighted average participating securities		(84)		(74)		(41)
Weighted average common shares outstanding		35,205		32,124		31,902
Incremental shares from assumed conversions of options, restricted stock units, performance units and restricted stock		88		233		335
Weighted average common and equivalent shares outstanding		32,293		32,357		32,237
Earnings per common share:
Basic	$	2.08	$	1.87	$	1.35
Diluted		2.07		1.86		1.34

There were no antidilutive common share equivalents as of December 31, 2019, 2018 and 2017.