Earnings Per Share

9 Months Ended

Sep. 30, 2023

9. EARNINGS PER SHARE

Earnings per share 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; 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,
	2023			2022			2023			2022
Net income	$	270,758		$	929,864		$	1,841,369		$	1,617,271
Earnings and dividends allocated to participating securities		(6,406	)		(6,227	)		(18,667	)		(17,955	)
Net income attributable to common stockholders	$	264,352		$	923,637		$	1,822,702		$	1,599,316
Weighted average common shares outstanding:
Average number of common shares outstanding - basic		11,048,877			10,924,646			11,041,578			10,785,362
Net effect of dilutive unvested restricted stock awards included for treasury stock method		41,797			53,354			43,106			57,153
Average number of common shares outstanding - diluted		11,090,674			10,978,000			11,084,684			10,842,515
Earnings per common share
Basic	$	0.02		$	0.08		$	0.17		$	0.15
Diluted	$	0.02		$	0.08		$	0.16		$	0.15

Common stock dividends totaled $808,876 ($0.0725 per share) and $804,289 ($0.0725 per share) for the three months ended September 30, 2023 and 2022, respectively, and $2,422,037 ($0.22 per share) and $2,213,115 ($0.20 per share), for the nine months ended September 30, 2023 and 2022, respectively.