NOTE 18 — EARNINGS PER COMMON SHARE

The Company uses the two-class method 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 calculation are as follows (in thousands, except per share data).


	Year Ended December 31,
	2019		2018
Basic
Net income per consolidated statements of income	$	30,134	$	25,554
Less: Earnings allocated to participating securities		(448)		(168)
Net income available to common stockholders	$	29,686	$	25,386

Weighted average common shares outstanding including participating securities		8,297,478		8,200,705
Less: Weighted average participating securities		(123,336)		(67,152)
Weighted average common shares outstanding		8,174,142		8,133,553

Basic earnings per common share		3.63		3.12

Diluted
Net income allocated to common stockholders	$	29,686	$	25,386

Weighted average common shares outstanding for basic earnings per common share		8,174,142		8,133,553
Add: Dilutive effects of assumed exercise of stock options		125,085		137,089
Add: Dilutive effects of assumed vesting of performance based restricted stock		39,914		17,882
Average shares and dilutive potential common shares		8,339,141		8,288,524

Dilutive earnings per common share	$	3.56	$	3.06

There were no stock options that were not considered in computing diluted earnings per common share for 2019 and 2018 because their exercise price was lower than the market price.