EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2020

EARNINGS PER SHARE.

EARNINGS PER SHARE

2. EARNINGS PER SHARE

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards (“RSAs”) and certain restricted stock units (“RSUs”) granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities.

The following table presents the computation of EPS for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands, except per share data)	2020		2019		2020		2019
Net income	$	10,656	$	10,653	$	20,004	$	23,580
Dividends paid on and earnings allocated to participating securities		(218)		(226)		(413)		(503)
Income attributable to common stock	$	10,438	$	10,427	$	19,591	$	23,077
Weighted average common shares outstanding, including participating securities		19,861		19,965		19,904		19,946
Weighted average participating securities		(409)		(428)		(411)		(427)
Weighted average common shares outstanding		19,452		19,537		19,493		19,519
Basic earnings per common share	$	0.54	$	0.53	$	1.01	$	1.18
Income attributable to common stock	$	10,438	$	10,427	$	19,591	$	23,077
Weighted average common shares outstanding		19,452		19,537		19,493		19,519
Incremental shares from assumed conversions of options and restricted stock units		36		28		34		26
Weighted average common and equivalent shares outstanding		19,488		19,565		19,527		19,545
Diluted earnings per common share	$	0.54	$	0.53	$	1.00	$	1.18

There were 180,020 stock options outstanding at June 30, 2020 that were not included in the computation of diluted earnings per share for the three and six months ended June 30, 2020 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were 110,660 stock options outstanding at June 30, 2019 that were not included in the computation of diluted earnings per share for the three and six months ended June 30, 2019 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive.

There were 46,010 and 32,865 RSUs that were antidilutive for the three months ended June 30, 2020 and 2019, respectively. There were 46,010 and 22,472 RSUs that were antidilutive for the six months ended June 30, 2020 and 2019, respectively.