NOTE 15 Earnings Per Share

Beginning in the third quarter of 2019, the Company elected to prospectively use the two-class method in calculating earnings per share due to the restricted stock awards and restricted stock units qualifying as participating securities. 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 participating rights in undistributed earnings. Average shares of common stock for diluted net income per common share include shares to be issued upon the vesting of restricted stock awards and restricted stock units granted under the Company's share-based compensation plans.

The calculation of basic and diluted earnings per share using the two-class method for the three and six months ending June 30, 2020 is presented below:


	Three months ended		Six months ended
	June 30,		June 30,
(dollars and shares in thousands, except per share data)	2020		2020
Net income	$	11,474	$	16,837
Dividends and undistributed earnings allocated to participating securities		200		282
Net income available to common shareholders	$	11,274	$	16,555
Weighted-average common shares outstanding for basic earnings per share		17,111		17,091
Dilutive effect of stock-based awards		334		334
Weighted-average common shares outstanding for diluted earnings per share		17,445		17,425
Earnings per common share:
Basic earnings per common share	$	0.66	$	0.97
Diluted earnings per common share	$	0.65	$	0.95

For the three and six months ended June 30, 2019, the basic and diluted earnings per share were calculated using the treasury stock method, as presented in the table below. The Company determined that the impact to diluted earnings per share would be immaterial if calculated under the two-class method for the three and six months ended June 30, 2019.

The calculation of basic and diluted earnings per share using the treasury stock method for the three and six months ending June 30, 2019 is presented below:


	Three months ended		Six months ended
	June 30,		June 30,
(dollars and shares in thousands, except per share data)	2019		2019
Basic:
Net income attributable to common shareholders	$	8,348	$	14,784
Weighted-average common shares outstanding		13,810		13,796
Basic earnings per common share	$	0.60	$	1.07
Diluted:
Net income attributable to common shareholders	$	8,348	$	14,784
Weighted-average common shares outstanding		13,810		13,796
Add: Dilutive effect of stock-based awards		290		293
Weighted-average common shares outstanding for diluted EPS		14,100		14,089
Diluted earnings per common share	$	0.59	$	1.05