6. Earnings Per Common Share

Basic earnings per share are calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e., unvested restricted stock), not subject to performance based measures.

The following table sets forth the computation of basic and diluted earnings per common share:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In Thousands, except per share data)
Basic Earnings Per Share: Net income available to common shareholders	$	13,171	$	11,306	$	36,852	$	34,152
Less: Income allocated to participating securities		1		1		3		3
Net income allocated to common shareholders		13,170		11,305		36,849		34,149

Weighted average common shares outstanding including participating securities(1)		19,801		20,409		19,873		20,382
Less: Participating securities		11		9		11		9
Average common shares(1)		19,790		20,400		19,862		20,373

Basic earnings per common share	$	0.67	$	0.55	$	1.86	$	1.68

Diluted Earnings Per Share:
Net income allocated to common shareholders	$	13,170	$	11,305	$	36,849	$	34,149
Weighted average common shares outstanding for basic earnings per common share(1)		19,790		20,400		19,862		20,373
Add: Dilutive effects of stock options		85		67		81		92
Average shares and dilutive potential common shares(1)		19,875		20,467		19,943		20,465

Diluted earnings per common share	$	0.66	$	0.55	$	1.85	$	1.67

(1)Share and per share data in above table has been adjusted for a 2-for-1 stock split on July 12, 2018.

There were no shares excluded from the diluted earnings per share calculation for the three and nine months ended September 30, 2019 and September 30, 2018, as no shares were anti-dilutive during these time periods.