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				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
	(In Thousands, except per share data)
Basic Earnings Per Share: Net income available to common shareholders	$	12,199	$	11,109	$	23,681	$	22,846
Less: Income allocated to participating securities		1		1		2		2
Net income allocated to common shareholders		12,198		11,108		23,679		22,844

Weighted average common shares outstanding including participating securities(1)		19,791		20,399		19,908		20,370
Less: Participating securities		11		11		11		11
Average common shares(1)		19,780		20,388		19,897		20,359

Basic earnings per common share	$	0.62	$	0.54		1.19		1.12

Diluted Earnings Per Share:
Net income allocated to common shareholders	$	12,198	$	11,108	$	23,679	$	22,844
Weighted average common shares outstanding for basic earnings per common share(1)		19,780		20,388		19,897		20,359
Add: Dilutive effects of stock options		80		104		79		107
Average shares and dilutive potential common shares(1)		19,860		20,492		19,976		20,466

Diluted earnings per common share	$	0.61	$	0.54		1.19		1.12

(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 6,171 shares for both the three and six month periods in 2019 that were excluded from the diluted earnings per common share calculation as they were anti-dilutive. There were no anti-dilutive shares for both the three and six month periods in 2018 excluded subject to issue upon exercise of options.