Earnings Per Common Share and Share Awards

Basic earnings per common share is computed by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income attributable to the Company by the combination of dilutive potential common stock, comprised of shares issuable under the Company’s share-based compensation plans, and the weighted average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, as share-based awards are exercised, (a) the exercise price of a share-based award and (b) the amount of compensation cost, if any, for future services that the Company has not yet recognized, are assumed to be used to repurchase shares in the current period.

The following table sets forth the computation of basic and diluted earnings per share for the three-month periods ended March 31:



	Three Months Ended March 31,
(in thousands, except per share amounts)	2019		2018
Net income attributable to the Company	$	6,626	$	4,176
Weighted average common shares outstanding – Basic	1,887		1,886
Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled)	9		11
Weighted average common shares outstanding – Diluted	1,896		1,897
Basic earnings per common share	$	3.51	$	2.21
Diluted earnings per common share	$	3.49	$	2.20

There were 9 thousand potential shares excluded from the computation of diluted earnings per share for the three-month period ended March 31, 2019. There were no potential shares excluded from the computation of diluted earnings per share for the three-month period ended March 31, 2018.

The Company historically has adopted employee stock award plans under which restricted stock, options or stock appreciation rights ("SARs") exercisable for the Company's stock, may be granted to key employees or directors of the Company. There are currently no active plans from which the Company may grant share-based awards.

As of March 31, 2019, the only outstanding awards under the plans were SARs, which expire seven years from the date of grant, and all of which vest and are exercisable within one year of the date of grant. All SARs issued to date have been share-settled only. There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant.

There was approximately $88 thousand and $62 thousand of compensation expense relating to SARs vesting on or before March 31, 2019 and 2018, respectively, included in personnel expenses in the Consolidated Statements of Income. As of March 31, 2019, there was no unrecognized compensation expense related to unvested share-based compensation arrangements granted under the Company’s stock award plans.

A summary of share-based award transactions for all share-based award plans follows:



(in thousands, except weighted average exercise price and average remaining contractual term)	Number Of Shares		Weighted Average Exercise Price		Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding as of January 1, 2018	25		$	93.40	3.98	2,624
SARs granted	4		188.71
SARs exercised	(1	)	41.50
Outstanding as of December 31, 2018	28		$	110.27	3.64	2,019
SARs granted	—		—
SARs exercised	(3	)	50.50
Outstanding as of March 31, 2019	25		$	117.30	3.78	1,331

Exercisable as of March 31, 2019	25		$	117.30	3.78	1,331

Unvested as of March 31, 2019	—		$	—	0.00	—