EPS

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings per Share

EPS

The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below:

	For The Year Ended December 31,
(In thousands, except number of shares and per share data)	2020		2019		2018
Net income	$	59,486	$	57,203	$	53,071
Dividends and undistributed earnings allocated to participating securities(1)	(149)		(120)		(148)
Net income available to common shareholders	$	59,337	$	57,083	$	52,923
Weighted-average common shares outstanding for basic EPS	14,985,235		15,407,289		15,571,387
Dilutive effect of stock-based awards(2)	38,532		45,733		54,916
Weighted-average common and potential common shares for diluted EPS	15,023,767		15,453,022		15,626,303
Earnings per common share:
Basic EPS	$	3.96	$	3.70	$	3.40
Diluted EPS	$	3.95	$	3.69	$	3.39
Awards excluded from the calculation of diluted EPS(3):
Performance-based awards	1,849		—		—
Stock options	1,000		—		—

(1)     Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends.

(2)     Represents the assumed dilutive effect of unexercised and/or unvested stock options, restricted shares and restricted share units, and contingently issuable performance-based awards utilizing the treasury stock method.

(3)    Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock, and, therefore, are considered anti-dilutive.

Nonvested stock-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of the Company’s nonvested stock-based awards qualify as participating securities.

Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested stock-based awards. Diluted EPS is computed in a similar manner, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method.