EARNINGS PER COMMON SHARE |
EARNINGS PER COMMON SHAREEarnings per common share is calculated utilizing the two-class method. Basic earnings per common share is calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share is calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. The diluted earnings per common share computation for both the three and nine months ended September 30, 2022 excluded antidilutive stock options of 45,698 and excluded antidilutive stock options of 69,145 for the comparable periods in 2021, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common shares for those respective periods. Presented below are the calculations for basic and diluted earnings per common share for the three and nine months ended September 30, 2022 and 2021: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | (dollars in thousands, except per share data) | 2022 | | 2021 | | 2022 | | 2021 | Net income | $ | 23,521 | | | $ | 19,548 | | | $ | 66,153 | | | $ | 58,210 | | | | | | | | | | | | | | | | | | | | | | | | | | Common shareholder dividends | (6,400) | | | (6,239) | | | (19,186) | | | (18,741) | | Unvested restricted stock award dividends | (70) | | | (60) | | | (218) | | | (186) | | Undistributed earnings to unvested restricted stock awards | (185) | | | (126) | | | (519) | | | (386) | | Undistributed earnings to common shareholders | $ | 16,866 | | | $ | 13,123 | | | $ | 46,230 | | | $ | 38,897 | | Basic | | | | | | | | Distributed earnings to common shareholders | $ | 6,400 | | | $ | 6,239 | | | $ | 19,186 | | | $ | 18,741 | | Undistributed earnings to common shareholders | 16,866 | | | 13,123 | | | 46,230 | | | 38,897 | | Total common shareholders earnings, basic | $ | 23,266 | | | $ | 19,362 | | | $ | 65,416 | | | $ | 57,638 | | Diluted | | | | | | | | Distributed earnings to common shareholders | $ | 6,400 | | | $ | 6,239 | | | $ | 19,186 | | | $ | 18,741 | | Undistributed earnings to common shareholders | 16,866 | | | 13,123 | | | 46,230 | | | 38,897 | | Total common shareholders earnings | 23,266 | | | 19,362 | | | 65,416 | | | 57,638 | | Add back: | | | | | | | | Undistributed earnings reallocated from unvested restricted stock awards | — | | | — | | | 1 | | | 1 | | Total common shareholders earnings, diluted | $ | 23,266 | | | $ | 19,362 | | | $ | 65,417 | | | $ | 57,639 | | Weighted average common shares outstanding, basic | 22,338,828 | | | 22,520,499 | | | 22,306,323 | | | 22,544,898 | | Options | 51,610 | | | 57,381 | | | 60,772 | | | 69,074 | | Weighted average common shares outstanding, diluted | 22,390,438 | | | 22,577,880 | | | 22,367,095 | | | 22,613,972 | | Basic earnings per common share | $ | 1.04 | | | $ | 0.86 | | | $ | 2.93 | | | $ | 2.56 | | Diluted earnings per common share | 1.04 | | | 0.86 | | | 2.92 | | | 2.55 | |
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