EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2020

EARNINGS PER SHARE

EARNINGS PER SHARE

Note 15 – Earnings Per Share

Earnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. The diluted earnings per share computation for the three months ended March 31, 2020 and 2019 excluded antidilutive stock options of 89,603 and 97,628, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common shares for those respective periods. Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2020 and 2019:

	Three Months Ended
		March 31,
(dollars in thousands, except per share data)	2020		2019
Net income	$	1,549	$	13,982
Preferred dividends declared		—		(82)
Preferred stock, premium amortization		—		48
Net income available to common shareholders		1,549		13,948
Common shareholder dividends		(6,510)		(5,776)
Unvested restricted stock award dividends		(65)		(47)
Undistributed earnings to unvested restricted stock awards		—		(65)
Undistributed (loss) earnings to common shareholders	$	(5,026)	$	8,060
Basic
Distributed earnings to common shareholders	$	6,510	$	5,776
Undistributed (loss) earnings to common shareholders		(5,026)		8,060
Total common shareholders earnings, basic	$	1,484	$	13,836
Diluted
Distributed earnings to common shareholders	$	6,510	$	5,776
Undistributed (loss) earnings to common shareholders		(5,026)		8,060
Total common shareholders earnings		1,484		13,836
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		—		—
Total common shareholders earnings, diluted	$	1,484	$	13,836
Weighted average common shares outstanding, basic		24,433,975		23,998,119
Options and warrants		104,027		206,542
Weighted average common shares outstanding, diluted		24,538,002		24,204,661
Basic earnings per common share	$	0.06	$	0.58
Diluted earnings per common share		0.06		0.57