EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2022

Basic earnings per common share is computed by dividing net income, excluding net earnings allocated to participating securities, by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. For the three months ended March 31, 2022 and 2021, there were no outstanding stock options to include in the diluted earnings per common share calculations.

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per common share pursuant to the two-class method. The Corporation has determined that its outstanding unvested time-based stock awards are participating securities.

The computation of basic and diluted earnings per common share is shown below:


	Three months ended March 31,
	2022		2021
Basic earnings per common share computation:
Net income per condensed consolidated statements of income	$	14,170	$	13,106
Net earnings allocated to participating securities	(63)		(45)
Net earnings allocated to common stock	$	14,107	$	13,061
Distributed earnings allocated to common stock	$	2,944	$	2,859
Undistributed earnings allocated to common stock	11,163		10,202
Net earnings allocated to common stock	$	14,107	$	13,061
Weighted average common shares outstanding, including shares considered participating securities	16,883		16,855
Less: Average participating securities	(72)		(56)
Weighted average shares	16,811		16,799
Basic earnings per common share	$	0.84	$	0.78
Diluted earnings per common share computation:
Net earnings allocated to common stock	$	14,107	$	13,061
Weighted average common shares outstanding for basic earnings per common share	16,811		16,799
Add: Dilutive effects of performance based-shares	33		0
Weighted average shares and dilutive potential common shares	16,844		16,799
Diluted earnings per common share	$	0.84	$	0.78