EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2019

NOTE 22 – EARNINGS PER SHARE

The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow:


	Year Ended December 31,
	2019		2018		2017
Basic
Net income available to common shareholders	$	14,806	$	34,505	$	28,083
Less: earnings allocated to participating securities	(120)		(372)		(219)
Net income allocated to common shareholders	$	14,686	$	34,133	$	27,864
Weighted average common shares outstanding including participating securities	$	14,633,399	$	14,169,294	$	13,145,005
Less: Participating securities	(118,747)		(152,638)		(102,650)
Average shares	14,514,652		14,016,656		13,042,355
Basic earnings per common share	$	1.01	$	2.44	$	2.14
Diluted
Net income allocated to common shareholders	$	14,686	$	34,133	$	27,864
Weighted average common shares outstanding for basic earnings per common share	14,514,652		14,016,656		13,042,355
Add: Dilutive effects of assumed exercises of stock options	352,242		540,302		633,738
Add: Dilutive effects of assumed exercises of stock warrants	—		—		1,578
Add: Dilutive effects of assumed vesting of restricted stock units	95,413		$	—	$	—
Average shares and dilutive potential common shares	$	14,962,307	$	14,556,958	$	13,677,671
Dilutive earnings per common share	$	0.98	$	2.34	$	2.04

Average stock options of 876,086, 546,325, and 285,706 shares of common stock were not considered in computing diluted earnings per common share for the year ended December 31, 2019, 2018, and 2017, respectively, because they were antidilutive.