EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

EARNINGS PER SHARE.

EARNINGS PER SHARE

2. EARNINGS PER SHARE

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards (“RSAs”) and certain restricted stock units (“RSUs”) granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities.

The following table presents the computation of EPS for the three and nine months ended September 30, 2020 and 2019:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands, except per share data)	2020		2019		2020		2019
Net income	$	13,061	$	13,903	$	33,065	$	37,483
Dividends paid on and earnings allocated to participating securities		(276)		(294)		(689)		(797)
Income attributable to common stock	$	12,785	$	13,609	$	32,376	$	36,686
Weighted average common shares outstanding, including participating securities		19,896		19,958		19,901		19,950
Weighted average participating securities		(423)		(422)		(415)		(425)
Weighted average common shares outstanding		19,473		19,536		19,486		19,525
Basic earnings per common share	$	0.66	$	0.70	$	1.66	$	1.88
Income attributable to common stock	$	12,785	$	13,609	$	32,376	$	36,686
Weighted average common shares outstanding		19,473		19,536		19,486		19,525
Incremental shares from assumed conversions of options and restricted stock units		41		32		36		27
Weighted average common and equivalent shares outstanding		19,514		19,568		19,522		19,552
Diluted earnings per common share	$	0.66	$	0.70	$	1.66	$	1.88

There were 180,020 stock options outstanding at September 30, 2020 that were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2020 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were 110,660 stock options outstanding at September 30, 2019 that were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2019 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive.

There were 46,625 and zero RSUs that were antidilutive for the three months ended September 30, 2020 and 2019, respectively. There were 46,625 and 9,190 RSUs that were antidilutive for the nine months ended September 30, 2020 and 2019, respectively.