Earnings Per Share

9 Months Ended

Sep. 30, 2019

NOTE 5 EARNINGS PER 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. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding. Application of the two-class method for participating securities results a more dilutive basic earnings per share as the participating securities are allocated the same amount of income as if they are outstanding for purposes of basic earnings per share. There is no additional potential dilution in calculating diluted earnings per share, therefore basic and diluted earnings per share are the same amounts. Other than the restricted stock plan, the Company has no other stock based compensation plans.

	(in thousands of dollars)						(in thousands of dollars)
	Three Months Ended						Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Earnings per share
Net income	$	4,275		$	3,875		$	13,679		$	11,756
Less: distributed earnings allocated to participating securities		(14	)		(13	)		(37	)		(38	)
Less: undistributed earnings allocated to participating securities		(18	)		(26	)		(63	)		(80	)
Net earnings available to common shareholders	$	4,243		$	3,836		$	13,579		$	11,638

Weighted average common shares outstanding including participating securities		11,121,426			9,274,507			11,105,993			9,268,819
Less: average unvested restricted shares		(79,335	)		(93,242	)		(81,569	)		(92,683	)
Weighted average common shares outstanding		11,042,091			9,181,265			11,024,424			9,176,136
Basic earnings and diluted per share	$	0.38		$	0.42		$	1.23		$	1.27