14.EARNINGS PER SHARE

Basic earnings per share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed in the same manner as basic EPS but also reflects the potential dilution that could occur from the grant of stock-based compensation awards. The Company maintains two active share-based compensation plans that may generate additional potentially dilutive common shares. For granted and unexercised stock options and stock-settled stock appreciation rights (SSARs), dilution would occur if Company-issued stock options or SSARs were exercised and converted into common stock. As of the years ended December 31, 2019, 2018 and 2017, there were 32,091, 29,301 and 14,300 potentially dilutive shares related to issued and unexercised stock options and SSARs. For restricted stock, dilution would occur from the Company’s previously granted but unvested shares. There were 10,720, 13,893 and 9,619 potentially dilutive shares related to unvested restricted share grants as of the years ended December 31, 2019, 2018 and 2017, respectively.

In the computation of diluted EPS, the Company uses the treasury stock method to determine the dilutive effect of its granted but unexercised stock options and SSARs and unvested restricted stock. Under the treasury stock method, the assumed proceeds, as defined, received from shares issued in a hypothetical stock option exercise or restricted stock grant, are assumed to be used to purchase treasury stock. Proceeds include amounts received from the exercise of outstanding stock options and compensation cost for future service that the Company has not yet recognized in earnings. The Company does not consider awards from share-based grants in the computation of basic EPS.

The following table illustrates the data used in computing basic and diluted EPS for the years indicated:



	Years ended December 31,
	2019		2018		2017
(dollars in thousands except per share data)
Basic EPS:
Net income available to common shareholders	$	11,576	$	11,006	$	8,716
Weighted-average common shares outstanding		3,779,582		3,752,704		3,711,490
Basic EPS	$	3.06	$	2.93	$	2.35

Diluted EPS:
Net income available to common shareholders	$	11,576	$	11,006	$	8,716
Weighted-average common shares outstanding		3,779,582		3,752,704		3,711,490
Potentially dilutive common shares		42,811		43,194		23,919
Weighted-average common and potentially dilutive shares outstanding		3,822,393		3,795,898		3,735,409
Diluted EPS	$	3.03	$	2.90	$	2.33