Earnings Per Common Share

3 Months Ended

Mar. 31, 2024

EARNINGS PER COMMON SHARE

LCNB has granted restricted stock awards with non-forfeitable dividend rights, which are considered participating securities. Accordingly, earnings per share is computed using the two-class method as required by ASC No. 260-10-45. Basic earnings per common share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. Diluted earnings per common share is adjusted for the dilutive effects of stock options, warrants, and restricted stock. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock options and warrants with proceeds used to purchase treasury shares at the average market price for the period.

Earnings per share for the three months ended March 31, 2024 and 2023 were calculated as follows (dollars in thousands, except share and per share data):


	Three Months Ended March 31,
		2024		2023
Net income		$	1,915	4,157
Less allocation of earnings and dividends to participating securities		12		30
Net income allocated to common shareholders		$	1,903	4,127

Weighted average common shares outstanding, gross		13,196,895		11,270,010
Less average participating securities		84,593		80,840
Adjusted weighted average number of shares outstanding used in the calculation of basic and diluted earnings per common share		13,112,302		11,189,170

Earnings per common share:
Basic		$	0.15	0.37
Diluted		0.15		0.37