Earnings Per Share

3 Months Ended

Mar. 31, 2019

Note 16. 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 shares are allocated between common shares and participating securities. The Company’s restricted stock awards are considered participating securities as the unvested awards have non-forfeitable rights to dividends, paid or unpaid, on unvested awards. The factors used in the earnings per share computation follow:

	Three Months Ended
	March 31,
(Dollars in thousands, except share data)	2019			2018
Basic
Net income	$	4,740		$	3,216
Undistributed earnings allocated to participating securities		(127	)		(106	)
Net income allocated to common shares		4,613			3,110
Weighted average common shares outstanding		15,817,060			13,292,083
Basic earnings per common share	$	0.29		$	0.23
Diluted
Net income allocated to common shares	$	4,613		$	3,110
Weighted average common shares outstanding for basic earnings per common share		15,817,060			13,292,083
Add: Dilutive effects of assumed exercises of stock options		295,665			534,873
Average shares and dilutive potential common shares		16,112,725			13,826,956
Diluted earnings per common share	$	0.29		$	0.22

Stock options and restricted stock awards for 145,000 share of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2019, because they were antidilutive. No shares of common stock were antidilutive for the three months ended March 31, 2018.