Earnings Per Common Share

12 Months Ended

Dec. 31, 2020

4.	Earnings Per Common Share

Basic earnings per share is 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 for the years ended December 31:

	2020		2019		2018
	(In Thousands, Except Per Share Amounts)
Basic Earnings Per Share:
Net income available to common shareholders	$	63,077	$	49,370	$	46,249
Less: Income allocated to participating securities		89		36		16
Net income allocated to common shareholders	$	62,988	$	49,334	$	46,233
Weighted average common shares outstanding Including participating securities		35,952		19,844		20,358
Less: Participating securities		50		20		9
Average common shares		35,902		19,824		20,349
Basic earnings per common share	$	1.75	$	2.49	$	2.27
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	62,988	$	49,334	$	46,233
Weighted average common shares outstanding for basic earnings per common share		35,902		19,824		20,349
Add: Dilutive effects of stock options and restricted stock units		47		107		119
Average shares and dilutive potential common shares		35,949		19,931		20,468
Diluted earnings per common share	$	1.75	$	2.48	$	2.26

Shares subject to issue upon exercise of options and vesting requirements of restricted stock units of 97,724 in 2020, zero in 2019 and 10,500 in 2018 were excluded from the diluted earnings per common share calculation as they were anti-dilutive.