Earnings Per Common Share

6 Months Ended

Jun. 30, 2021

EARNINGS PER COMMON SHARE

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 six months ended June 30, 2021 and 2020, 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 June 30,				Six months ended June 30,
	2021		2020		2021		2020
Basic earnings per common share computation:
Net income per consolidated statements of income	$	12,915	$	8,246	$	26,021	$	17,059
Net earnings allocated to participating securities	(47)		(29)		(92)		(59)
Net earnings allocated to common stock	$	12,868	$	8,217	$	25,929	$	17,000
Distributed earnings allocated to common stock	$	2,859	$	2,608	$	5,718	$	5,216
Undistributed earnings allocated to common stock	10,009		5,609		20,211		11,784
Net earnings allocated to common stock	$	12,868	$	8,217	$	25,929	$	17,000
Weighted average common shares outstanding, including shares considered participating securities	16,885		15,393		16,870		15,365
Less: Average participating securities	(60)		(52)		(58)		(52)
Weighted average shares	16,825		15,341		16,812		15,313
Basic earnings per common share	$	0.76	$	0.54	$	1.54	$	1.11
Diluted earnings per common share computation:
Net earnings allocated to common stock	$	12,868	$	8,217	$	25,929	$	17,000
Weighted average common shares outstanding for basic earnings per common share	16,825		15,341		16,812		15,313
Add: Dilutive effects of performance based-shares	0		0		0		0
Weighted average shares and dilutive potential common shares	16,825		15,341		16,812		15,313
Diluted earnings per common share	$	0.76	$	0.54	$	1.54	$	1.11