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)
	Three Months Ended
	March 31, 2020			March 31, 2019
Earnings per share
Net income	$	4,105		$	3,224
Less: distributed earnings allocated to participating securities		(13	)		(12	)
Less: undistributed earnings allocated to participating securities		(20	)		(12	)
Net earnings available to common shareholders	$	4,072		$	3,200

Weighted average common shares outstanding including participating securities		11,134,870			11,089,839
Less: average unvested restricted shares		(84,732	)		(83,417	)
Weighted average common shares outstanding		11,050,138			11,006,422
Basic earnings and diluted per share	$	0.37		$	0.29