EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2020

Basic earnings per common 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 common 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 nine months ended September 30, 2020 and 2019, there were no outstanding stock options to include in the diluted earnings per common 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 common 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 common share is shown below:


	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Basic earnings per common share computation:
Net income per consolidated statements of income	$	7,785	$	10,357	$	24,844	$	29,597
Net earnings allocated to participating securities	(24)		(37)		(82)		(114)
Net earnings allocated to common stock	$	7,761	$	10,320	$	24,762	$	29,483
Distributed earnings allocated to common stock	$	2,863	$	2,573	$	8,079	$	7,734
Undistributed earnings allocated to common stock	4,898		7,747		16,683		21,749
Net earnings allocated to common stock	$	7,761	$	10,320	$	24,762	$	29,483
Weighted average common shares outstanding, including shares considered participating securities	16,616		15,197		15,785		15,218
Less: Average participating securities	(47)		(51)		(50)		(58)
Weighted average shares	16,569		15,146		15,735		15,160
Basic earnings per common share	$	0.47	$	0.68	$	1.57	$	1.94
Diluted earnings per common share computation:
Net earnings allocated to common stock	$	7,761	$	10,320	$	24,762	$	29,483
Weighted average common shares outstanding for basic earnings per common share	16,569		15,146		15,735		15,160
Add: Dilutive effects of performance based-shares	0		0		0		0
Weighted average shares and dilutive potential common shares	16,569		15,146		15,735		15,160
Diluted earnings per common share	$	0.47	$	0.68	$	1.57	$	1.94