Earnings Per Common Share

9 Months Ended

Sep. 30, 2020

Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits. Diluted EPS includes accrued but unissued shares relating to the Director's Compensation Program, stock options, and restricted stock determined using the treasury stock method. The dilutive EPS calculation assumes all outstanding stock options to purchase common stock have been exercised at the beginning of the year and the pro forma proceeds from the exercised options and restricted stock are used to purchase common stock at the average fair market valuation price.

The computations of basic and diluted earnings per common share for the Company were as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands, except per share amounts)	2020		2019		2020		2019
Numerator:
Net income - basic	$	7,285	$	6,847	$	20,884	$	18,081
Net income - diluted	$	7,285	$	6,847	$	20,884	$	18,081

Denominator:
Weighted average shares outstanding - basic	7,327,395		7,304,273		7,321,092		6,993,990
Plus: Effect of Director Stock Compensation Program	272		330		1,088		1,529
Plus: Effect of stock options and restricted stock	15,011		35,895		19,567		36,540
Weighted average shares outstanding - diluted	7,342,678		7,340,498		7,341,747		7,032,059

Earnings per common share:
Basic	$	0.99	$	0.94	$	2.85	$	2.59
Diluted	$	0.99	$	0.93	$	2.84	$	2.57