Earnings Per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

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:

	Year Ended
	December 31,
(Dollars in thousands, except share data)	2020			2019			2018
Basic
Net income	$	13,127		$	16,757		$	14,253
Undistributed earnings allocated to participating securities		(195	)		(383	)		(422	)
Net income allocated to common shares		12,932			16,374			13,831
Weighted average common shares outstanding		15,196,351			15,741,926			15,104,939
Basic earnings per common share	$	0.85		$	1.04		$	0.92
Diluted
Net income allocated to common shares	$	12,932		$	16,374		$	13,831
Weighted average common shares outstanding for basic    earnings per common share		15,196,351			15,741,926			15,104,939
Add: Dilutive effects of assumed exercises of stock options		27,537			193,388			446,124
Average shares and dilutive potential common shares		15,223,888			15,935,314			15,551,063
Diluted earnings per common share	$	0.85		$	1.03		$	0.89

Stock options and restricted stock awards for 222,000 shares of common stock were not considered in computing diluted earnings per common share for year ended December 31, 2020, because they were antidilutive. No share of common stock was antidilutive for year ended December 31, 2019 or December 31, 2018.