Earnings Per Common Share

3 Months Ended

Mar. 31, 2023

EARNINGS PER COMMON SHARE

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options, restricted stock awards and restricted stock unit awards.

We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the

weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation.

The components of basic and diluted earnings per share were as follows for the three-month periods ended March 31, 2023 and 2022:


	Three Months Ended March 31,
(In Thousands, Except Share Data)	2023				2022
	Basic		Diluted		Basic		Diluted
Net income (loss)	$	694	$	694	$	28,349	$	28,349
Weighted-average common shares outstanding	25,220,437		25,220,437		25,100,885		25,100,885
Add dilutive effect of restricted stock unit awards	—		279,678		—		222,220
Add dilutive effect of stock options	—		—		—		—
Weighted-average common shares outstanding	25,220,437		25,500,115		25,100,885		25,323,105
Earnings (loss) per common share	$	0.03	$	0.03	$	1.13	$	1.12
Awards excluded from diluted earnings per share calculation(1)	—		737,629		—		822,375

(1)Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive.