Earnings Per Share ("EPS")

6 Months Ended

Jun. 30, 2020

Earnings Per Share (“EPS”)

Basic EPS excludes dilution and is computed by dividing net income or loss allocable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock that would then share in our earnings.

The following table shows how we computed basic and diluted EPS for the three and six months ended June 30, 2020 and 2019.


(In thousands, except per share data)	For the Three Months Ended June 30,									For the Six Months Ended June 30,
			2020			2019			2020			2019
Basic EPS:
Net income (loss)	$	1,905		$	2,728		$	(455)		$	3,610



Net income allocable to common shareholders	$	1,905		$	2,728		$	(455)		$	3,610
Less earnings allocated to participating securities	17			102			—			191
Earnings allocated to common shareholders	$	1,888		$	2,626		$	(455)		$	3,419
Weighted average common shares outstanding	23,502			22,620			23,489			22,224
Basic earnings per common share	$	0.08		$	0.12		$	(0.02)		$	0.15
Diluted EPS:
Earnings allocated to common shareholders	$	1,905		$	2,728		$	(455)		$	3,610
Weighted average common shares outstanding	23,502			22,620			23,489			22,224
Add dilutive effects of restricted stock grants	111			170			—			154
Add dilutive effects of restricted stock units	100			—			—			—
Add dilutive effects for assumed conversion of Series A preferred stock	—			710			—			1,086
Add dilutive effect for stock options	—			116			—			117
Weighted average diluted common shares outstanding	23,713			23,616			23,489			23,581
Diluted earnings per common share	$	0.08		$	0.12		$	(0.02)		$	0.15

(1)The basic and diluted earnings per share amounts for the three and six months ended June 30, 2020 and 2019 are the same under both the Treasury Stock Method and the Two-Class Method as prescribed in FASB ASC 260-10, Earnings Per Share.

The weighted average shares that have an antidilutive effect in the calculation of diluted net income per share and have been excluded from the computations above were as follows:


	For the Three Months Ended June 30,			For the Six Months Ended June 30,
	2020	2019	2020	2019
Stock options⁽¹⁾⁽²⁾	631,995	183,724	782,909	184,275

(1)Stock options that were excluded from the computation of diluted earnings per common share for the three and six months ended June 30, 2020 and 2019 as a result of the reported net loss available to common shareholders.

(2)Represents stock options that were excluded from the computation of diluted earnings per common share for the three and six months ended June 30, 2020 and 2019 as a result of the shares being “out-of-the-money.”