20.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. See Footnote 14, “Stockholders’ Equity and Regulatory Capital Matters” of this section of the filing.

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:


Years Ended December 31, (in thousands, except per share data)	2019		2018		2017

Net income	$	91,699	$	77,852	$	45,632
Dividends declared on Common Stock:
Class A Shares		(19,771)		(18,076)		(16,158)
Class B Shares		(2,121)		(1,955)		(1,773)
Undistributed net income for basic earnings per share		69,807		57,821		27,701
Weighted average potential dividends on Class A shares upon exercise of dilutive options		(118)		(102)		(75)
Undistributed net income for diluted earnings per share	$	69,689	$	57,719	$	27,626

Weighted average shares outstanding:
Class A Shares		18,813		18,736		18,678
Class B Shares		2,210		2,224		2,243
Effect of dilutive securities on Class A Shares outstanding		112		105		86
Weighted average shares outstanding including dilutive securities		21,135		21,065		21,007

Basic earnings per share:
Class A Common Stock:
Per share dividends distributed	$	1.06	$	0.97	$	0.87
Undistributed earnings per share*		3.35		2.79		1.34
Total basic earnings per share - Class A Common Stock	$	4.41	$	3.76	$	2.21

Class B Common Stock:
Per share dividends distributed	$	0.96	$	0.88	$	0.79
Undistributed earnings per share*		3.05		2.53		1.22
Total basic earnings per share - Class B Common Stock	$	4.01	$	3.41	$	2.01

Diluted earnings per share:
Class A Common Stock:
Per share dividends distributed	$	1.06	$	0.97	$	0.87
Undistributed earnings per share*		3.33		2.77		1.33
Total diluted earnings per share - Class A Common Stock	$	4.39	$	3.74	$	2.20

Class B Common Stock:
Per share dividends distributed	$	0.96	$	0.88	$	0.79
Undistributed earnings per share*		3.03		2.52		1.21
Total diluted earnings per share - Class B Common Stock	$	3.99	$	3.40	$	2.00

*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:


December 31,	2019	2018	2017

Antidilutive stock options	154,750	165,000	4,500
Average antidilutive stock options	151,260	47,712	2,375