Earnings per common share

3 Months Ended

Mar. 31, 2024

Earnings per common share

Earnings per common share

Note 3 – Earnings per common share

The following table presents the basic and diluted earnings per common share computation (dollars in thousands, except per share data):

	Three Months Ended March 31,
	2024		2023
Numerator
Net income - basic and diluted	$	1,772	$	1,540
Denominator
Weighted average shares outstanding - basic		1,493		1,484
Dilutive effect of common stock options		—		—
Weighted average shares outstanding - diluted		1,493		1,484
Earnings per share - basic	$	1.19	$	1.04
Earnings per share - diluted	$	1.19	$	1.04

Applicable guidance requires that outstanding, unvested share-based payment awards that contain voting rights and rights to nonforfeitable dividends participate in undistributed earnings with common shareholders. Accordingly, the weighted average number of shares of the Company’s common stock used in the calculation of basic and diluted net income per common share includes unvested shares of the Company’s outstanding restricted common stock.

The vesting of 10,252 and 10,658 of the unvested restricted units at March 31, 2024 and 2023, respectively, included in Note 10 “Stock incentive plan” was dependent upon meeting certain performance criteria. As of March 31, 2024 and 2023, it was indeterminable whether these unvested restricted units would vest and as such the underlying shares were excluded from common shares issued and outstanding at such date and were not included in the computation of earnings per share for such period.