Earnings Per Common Share

3 Months Ended

Mar. 31, 2019

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,
	2019		2018
	(In Thousands, except per share data)
Basic Earnings Per Share:
Net income available to common shareholders	$	11,482	$	11,737
Less: Income allocated to participating securities		9		3
Net income allocated to common shareholders		11,473		11,734

Weighted average common shares outstanding Including participating securities		20,030		20,352
Less: Participating securities		16		22
Average common shares		20,014		20,330

Basic earnings per common share	$	0.57	$	0.58

Diluted Earnings Per Share:
Net income allocated to common shareholders	$	11,473	$	11,734
Weighted average common shares outstanding for basic earnings per common share		20,014		20,330
Add: Dilutive effects of stock options		81		108
Average shares and dilutive potential common shares		20,095		20,438

Diluted earnings per common share	$	0.57	$	0.57

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

Shares subject to issue upon exercise of options of 3,376 in 2019 and 7,000 in 2018 were excluded from the diluted earnings per common share calculation as they were anti-dilutive.