Computation of Earnings Per Common Share

12 Months Ended

Dec. 31, 2020

Computation of Earnings Per Common Share

Basic earnings per common share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate solely to outstanding shares in the Directors Plan and grant awards under the RSP, see "Note 13 – Benefit Plans."

Earnings per common share have been computed based on the following for the years ended December 31:


	2020		2019		2018
Average number of common shares outstanding for basic calculation	7,959,705		7,909,794		7,872,077
Average potential effect of common shares in the Directors Plan (1)	143,878		185,248		200,771
Average potential effect of common shares in the RSP	2,508		—		—
Average number of common shares outstanding used to calculate diluted earnings per common share	8,106,091		8,095,042		8,072,848
Net income	$	10,885	$	13,024	$	14,021
Earnings per common share
Basic	$	1.37	$	1.65	$	1.78
Diluted	$	1.34	$	1.61	$	1.74

(1) Exclusive of shares held in the Rabbi Trust