Earnings Per Share

9 Months Ended

Sep. 30, 2022

9. EARNINGS PER SHARE

Earnings per share (“EPS”) is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. The Company grants restricted stock to certain employees under its stock-based compensation programs, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of the Company's common stock, $0.01 par value (the “common stock”); these unvested awards meet the definition of participating securities.

The following table sets forth the computation of basic and diluted earnings per share:




	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021
Net income	$	929,864		$	629,062		$	1,617,271		$	1,901,608
Earnings and dividends allocated to participating securities		(6,227	)		(6,929	)		(17,955	)		(18,494	)
Net income attributable to common stockholders	$	923,637		$	622,133		$	1,599,316		$	1,883,114
Weighted average common shares outstanding:
Average number of common shares outstanding - basic		10,924,646			10,601,521			10,785,362			9,757,458
Net effect of dilutive unvested restricted stock awards included for treasury stock method		53,354			33,485			57,153			29,859
Average number of common shares outstanding - diluted		10,978,000			10,635,006			10,842,515			9,787,317
Earnings per common share
Basic	$	0.08		$	0.06		$	0.15		$	0.19
Diluted	$	0.08		$	0.06		$	0.15		$	0.19

Common stock dividends totaled $804,289 ($0.0725 per share) and $696,060 ($0.065 per share) for the three months ended September 30, 2022 and 2021, respectively, and $2,213,115 ($0.2025 per share) and $1,915,591 ($0.195 per share) for the nine months ended September 30, 2022 and 2021, respectively.