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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2020

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				Six Months Ended
	June 30,				June 30,
(in thousands, except per share data)	2020		2019		2020		2019

Net income	$	15,804	$	18,007	$	42,501	$	47,523
Dividends declared on Common Stock:
Class A Shares		(5,347)		(4,932)		(10,705)		(9,865)
Class B Shares		(572)		(530)		(1,144)		(1,061)
Undistributed net income for basic earnings per share		9,885		12,545		30,652		36,597
Weighted average potential dividends on Class A shares upon exercise of dilutive options		(7)		(32)		(24)		(68)
Undistributed net income for diluted earnings per share	$	9,878	$	12,513	$	30,628	$	36,529

Weighted average shares outstanding:
Class A Shares		18,804		18,804		18,821		18,785
Class B Shares		2,200		2,212		2,202		2,212
Effect of dilutive securities on Class A Shares outstanding		25		122		42		128
Weighted average shares outstanding including dilutive securities		21,029		21,138		21,065		21,125

Basic earnings per share:
Class A Common Stock:
Per share dividends distributed	$	0.29	$	0.26	$	0.57	$	0.53
Undistributed earnings per share*		0.48		0.60		1.47		1.76
Total basic earnings per share - Class A Common Stock	$	0.77	$	0.86	$	2.04	$	2.29

Class B Common Stock:
Per share dividends distributed	$	0.26	$	0.24	$	0.52	$	0.48
Undistributed earnings per share*		0.43		0.55		1.34		1.60
Total basic earnings per share - Class B Common Stock	$	0.69	$	0.79	$	1.86	$	2.08

Diluted earnings per share:
Class A Common Stock:
Per share dividends distributed	$	0.29	$	0.26	$	0.57	$	0.53
Undistributed earnings per share*		0.47		0.60		1.47		1.75
Total diluted earnings per share - Class A Common Stock	$	0.76	$	0.86	$	2.04	$	2.28

Class B Common Stock:
Per share dividends distributed	$	0.26	$	0.24	$	0.52	$	0.48
Undistributed earnings per share*		0.43		0.54		1.33		1.59
Total diluted earnings per share - Class B Common Stock	$	0.69	$	0.78	$	1.85	$	2.07

*To arrive at undistributed earnings per share, undistributed net income is first prorated 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		Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019

Antidilutive stock options	427,000	160,000	247,000	165,000
Average antidilutive stock options	365,000	156,000	172,000	159,000