Earnings Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share

Earnings Per Share

(12)    Earnings Per Share

Holders of unvested restricted stock accrue dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Unvested restricted stock awards that contain nonforfeitable rights to dividends or dividend equivalents are considered to be participating securities in the earnings per share computation using the two-class method. Under the two-class method, earnings are allocated to common shareholders and participating securities according to their respective rights to earnings.

The table below presents the information used to compute basic and diluted earnings per share:

	Three Months Ended				Six Months Ended
(Dollars in thousands, except per share data)	2020		2019		2020		2019
Net income	$	4,291	$	5,060	$	8,764	$	11,584
Income allocated to participating securities		(37)		(37)		(48)		(74)
Net income available to common shareholders	$	4,254	$	5,023	$	8,716	$	11,510
Weighted-average number of shares used in:
Basic earnings per share		9,092,287		9,172,376		9,164,877		9,170,825
Dilutive common stock equivalents:
Stock options and restricted stock units		46,848		104,304		63,544		123,502
Diluted earnings per share		9,139,135		9,276,680		9,228,421		9,294,327
Net income per common share, basic	$	0.47	$	0.55	$	0.95	$	1.26
Net income per common share, diluted	$	0.47	$	0.54	$	0.94	$	1.24