Earnings Per Common Share

12 Months Ended

Dec. 31, 2022

Earnings Per Common Share [Abstract]

Earnings Per Common Share

NOTE 21 – EARNINGS PER COMMON SHARE

The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities (certain unvested share-based awards and Series C preferred stock outstanding) according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow:

	Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
Basic
Net income	$	18,164	$	18,453	$	29,608
Earnings allocated to participating securities (Series C preferred stock) (1)		-		-		(2,280)
Net income allocated to common stockholders	$	18,164	$	18,453	$	27,328
Weighted average common shares outstanding including unvested share-based payment awards		6,508,064		6,605,278		6,072,829
Less: Unvested share-based payment awards-2019 Plan		(111,011)		(97,122)		(43,732)
Average shares		6,397,053		6,508,156		6,029,097
Basic earnings per common share	$	2.84	$	2.84	$	4.53
Diluted
Net earnings allocated to common stockholders	$	18,164	$	18,453	$	27,328
Add back: Preferred Dividends on Series B stock and accretion of discount		-		-		-
Net earnings allocated to common stockholders	$	18,164	$	18,453	$	27,328
Weighted average common shares outstanding for basic earnings per common share		6,397,053		6,508,156		6,029,097
Add: Dilutive effects of assumed exercises of stock options		27,096		45,169		34,158
Add: Dilutive effects of unvested share-based payment awards-2019 Plan		111,011		97,122		43,732
Average shares and dilutive potential common shares		6,535,160		6,650,447		6,106,987
Diluted earnings per common share	$	2.78	$	2.77	$	4.47

⁽¹⁾12,607 outstanding shares of Series C preferred stock were converted into a total of 1,260,700 shares of the Company’s Non-Voting Common Stock effective as of the close of business on May 28, 2020.

The following securities were anti-dilutive and not considered in computing diluted earnings per common share.

	2022	2021	2020
Stock options	-	-	331