Earnings Per Share

6 Months Ended

Jun. 30, 2020

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income, excluding net earnings allocated to participating securities, by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. For the three and six months ended June 30, 2020 and 2019, there were no outstanding stock options to include in the diluted earnings per share calculations and the impact of performance-based shares was immaterial.

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding unvested stock awards are participating securities.

The computation of basic and diluted earnings per share is shown below:


	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
Basic earnings per common share computation:
Net income per consolidated statements of income	$	8,246	$	9,767	$	17,059	$	19,240
Net earnings allocated to participating securities	(29)		(40)		(59)		(78)
Net earnings allocated to common stock	$	8,217	$	9,727	$	17,000	$	19,162
Distributed earnings allocated to common stock	$	2,608	$	2,580	$	5,216	$	5,160
Undistributed earnings allocated to common stock	5,609		7,147		11,784		14,002
Net earnings allocated to common stock	$	8,217	$	9,727	$	17,000	$	19,162
Weighted average common shares outstanding, including shares considered participating securities	15,393		15,230		15,365		15,230
Less: Average participating securities	(52)		(62)		(52)		(62)
Weighted average shares	15,341		15,168		15,313		15,168
Basic earnings per common share	$	0.54	$	0.64	$	1.11	$	1.26
Diluted earnings per common share computation:
Net earnings allocated to common stock	$	8,217	$	9,727	$	17,000	$	19,162
Weighted average common shares outstanding for basic earnings per common share	15,341		15,168		15,313		15,168
Add: Dilutive effects of assumed exercises of stock options	0		0		0		0
Weighted average shares and dilutive potential common shares	15,341		15,168		15,313		15,168
Diluted earnings per common share	$	0.54	$	0.64	$	1.11	$	1.26