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 March 31,
	2018		2017
	(In Thousands, except per share data)
Basic Earnings Per Share:
Net income available to common shareholders	$	11,737	$	5,140
Less: Income allocated to participating securities		3		1
Net income allocated to common shareholders		11,734		5,139

Weighted average common shares outstanding Including participating securities		10,176		9,446
Less: Participating securities		11		5
Average common shares		10,165		9,441

Basic earnings per common share	$	1.15	$	0.54

Diluted Earnings Per Share:
Net income allocated to common shareholders	$	11,734	$	5,139
Weighted average common shares outstanding for basic earnings per common share		10,165		9,441
Add: Dilutive effects of stock options		54		56
Average shares and dilutive potential common shares		10,219		9,497

Diluted earnings per common share	$	1.15	$	0.54

Shares subject to issue upon exercise of options of 3,500 in 2018 and 4,569 in 2017 were excluded from the diluted earnings per common share calculation as they were anti-dilutive.