Earnings per Common Share

Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends, or dividend equivalents, at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method.

There were no anti-dilutive employee share-based awards for the years ended December 31, 2018, 2017, and 2016.



		For the Year Ended December 31,
		2018		2017		2016
	(Dollars in Thousands, Except Share Data)
Basic earnings per common share
Net income		$	16,303	$	11,905	$	14,909
Less: earnings allocated to participating securities		240		162		219
Basic earnings allocated to common shareholders		$	16,063	$	11,743	$	14,690
Weighted-average common shares outstanding, excluding participating securities		8,640,198		8,612,770		8,573,722
Basic earnings per common share		$	1.86	$	1.36	$	1.71

Diluted earnings per common share
Earnings allocated to common shareholders, diluted		$	16,063	$	11,743	$	14,690
Weighted-average diluted common shares outstanding, excluding participating securities		8,640,198		8,612,770		8,573,722
Diluted earnings per common share		$	1.86	$	1.36	$	1.71