Earnings Per Common Share

9 Months Ended

Sep. 30, 2020

6.	Earnings Per Common Share

Basic earnings per share are calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e., unvested restricted stock), not subject to performance based measures.

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In Thousands, except per share data)
Basic Earnings Per Share:
Net income available to common shareholders	$	25,655	$	13,171	$	32,230	$	36,852
Less: income allocated to participating securities		36		1		46		3
Net income allocated to common shareholders		25,619		13,170		32,184		36,849

Weighted average common shares outstanding including participating securities		37,356		19,801		35,481		19,873
Less: Participating securities		52		11		50		11
Average common shares		37,304		19,790		35,431		19,862

Basic earnings per common share	$	0.69	$	0.67	$	0.91	$	1.86
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	25,619	$	13,170	$	32,184	$	36,849
Weighted average common shares outstanding for basic (loss) earnings per common share		37,304		19,790		35,431		19,862
Add: Dilutive effects of stock options		30		85		51		81
Average shares and dilutive potential common shares		37,334		19,875		35,482		19,943

Diluted earnings per common share	$	0.69	$	0.66	$	0.91	$	1.85

There were 27,341 and 25,329 shares for the three and nine month periods ending September 30, 2020, respectively, that were excluded from the diluted earnings per common share calculation as they were anti-dilutive. There were no shares for both the three and nine month periods in 2019 that were excluded from the diluted earnings per common share calculation as no shares were anti-dilutive during these time periods.