PER SHARE DATA

Basic earnings per common share are calculated using the

two

-class method to determine income attributable to common shareholders. Unvested restricted stock awards that contain nonforfeitable rights to dividends are considered participating securities under the

two

-class method. Distributed dividends and an allocation of undistributed net income to participating securities reduce the amount of income attributable to common shareholders. Income attributable to common shareholders is then divided by weighted-average common shares outstanding for the period to determine basic earnings per common share.

Diluted earnings per common share are calculated under the more dilutive of either the treasury method or the

two

-class method. Diluted earnings per common share is computed using weighted-average common shares outstanding, plus weighted-average common shares available from the exercise of all dilutive stock options, less the number of shares that could be repurchased with the proceeds of stock option exercises based on the average share price of the Corporation's common stock during the period.

	Years Ended
	Dec. 31,			Dec. 31,
	2019			2018
Basic
Net income	$	19,504,000		$	22,013,000
Less: Dividends and undistributed earnings allocated to participating securities		(100,000	)		(110,000	)
Net income attributable to common shares	$	19,404,000		$	21,903,000
Basic weighted-average common shares outstanding		13,298,736			12,219,209
Basic earnings per common share (a)	$	1.46		$	1.79

Diluted
Net income attributable to common shares	$	19,404,000		$	21,903,000
Basic weighted-average common shares outstanding		13,298,736			12,219,209
Dilutive effect of potential common stock arising from stock options		22,823			38,159
Diluted weighted-average common shares outstanding		13,321,559			12,257,368
Diluted earnings per common share (a)	$	1.46		$	1.79

(a) Basic and diluted earnings per share under the

two

-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares with nonforfeitable dividends (participating securities).

The weighted-average number of nonvested restricted shares outstanding was

68,358

shares in

2019

and

61,778

shares in

2018.

Stock options that are anti-dilutive are excluded from net income per share calculations. There were

anti-dilutive instruments in

2019

2018.