(Loss) Earnings Per Common Share

3 Months Ended

Mar. 31, 2020

6.	(Loss) Earnings Per Common Share

Basic (loss) earnings per share are calculated using the two-class method. The two-class method is an earnings allocation formula under which (loss) 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 (losses) 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 (loss) earnings per common share:

	Three Months Ended March 31,
	2020			2019
	(In Thousands, except per share data)
Basic (Loss) Earnings Per Share:
Net (loss) income available to common shareholders	$	(22,482	)	$	11,482
Less: (loss) income allocated to participating securities		(39	)		9
Net (loss) income allocated to common shareholders		(22,443	)		11,473

Weighted average common shares outstanding including participating securities		31,721			20,030
Less: Participating securities		55			16
Average common shares		31,666			20,014

Basic (loss) earnings per common share	$	(0.71	)	$	0.57
Diluted (Loss) Earnings Per Share:
Net (loss) income allocated to common shareholders	$	(22,443	)	$	11,473
Weighted average common shares outstanding for basic (loss) earnings per common share		31,666			20,014
Add: Dilutive effects of stock options		—			81
Average shares and dilutive potential common shares		31,666			20,095

Diluted (loss) earnings per common share	$	(0.71	)	$	0.57

Since net income allocated to common shareholders was negative for the quarter ended March 31, 2020, there is no dilutive effect of stock options included in the diluted (loss) earnings per common share calculation. 3,376 shares subject to issue upon exercise of options of in 2019 were excluded from the diluted earnings per common share calculation as they were anti-dilutive.