13. EARNINGS PER SHARE

The Company calculates earnings per share under the two-class method. Under the two-class method, earnings available to common shareholders for the period are allocated between Class A Common Stock and Class B Common Stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. The difference in earnings per share between the two classes of common stock results from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on Class B Common Stock.

A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and diluted earnings per share computations is presented below:


	Three Months Ended
	March 31,
(in thousands, except per share data)	2019		2018

Net income	$	29,516	$	27,469
Dividends declared on Common Stock:
Class A Shares		(4,933)		(4,517)
Class B Shares		(531)		(494)
Undistributed net income for basic earnings per share		24,052		22,458
Weighted average potential dividends on Class A shares upon exercise of dilutive options		(35)		(24)
Undistributed net income for diluted earnings per share	$	24,017	$	22,434

Weighted average shares outstanding:
Class A Shares		18,761		18,677
Class B Shares		2,212		2,243
Effect of dilutive securities on Class A Shares outstanding		133		98
Weighted average shares outstanding including dilutive securities		21,106		21,018

Basic earnings per share:
Class A Common Stock:
Per share dividends distributed	$	0.26	$	0.24
Undistributed earnings per share*		1.16		1.08
Total basic earnings per share - Class A Common Stock	$	1.42	$	1.32

Class B Common Stock
Per share dividends distributed	$	0.24	$	0.22
Undistributed earnings per share*		1.05		0.99
Total basic earnings per share - Class B Common Stock	$	1.29	$	1.21

Diluted earnings per share:
Class A Common Stock:
Per share dividends distributed	$	0.26	$	0.24
Undistributed earnings per share*		1.15		1.08
Total diluted earnings per share - Class A Common Stock	$	1.41	$	1.32

Class B Common Stock:
Per share dividends distributed	$	0.24	$	0.22
Undistributed earnings per share*		1.04		0.98
Total diluted earnings per share - Class B Common Stock	$	1.28	$	1.20

*To arrive at undistributed earnings per share, undistributed net income is first pro rated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class.

Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows:


	Three Months Ended
	March 31,
	2019	2018

Antidilutive stock options	163,000	4,500
Average antidilutive stock options	162,000	4,500