EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2021

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

NOTE 18 — EARNINGS PER COMMON SHARE

The Company uses the two-class method in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share calculation are as follows (in thousands, except per share data).

	Year Ended December 31,
	2021		2020
Basic
Net income per consolidated statements of income	$	60,555	$	39,466
Less:  Earnings allocated to participating securities		(739)		(344)
Net income available to common stockholders	$	59,816	$	39,122
Weighted average common shares outstanding including participating securities		9,123,037		8,293,677
Less:  Weighted average participating securities		(111,337)		(72,248)
Weighted average common shares outstanding		9,011,700		8,221,429
Basic earnings per common share		6.64		4.76
Diluted
Net income allocated to common stockholders	$	59,816	$	39,122
Weighted average common shares outstanding for basic earnings per common share		9,011,700		8,221,429
Add:  Dilutive effects of assumed exercise of stock options		170,792		103,463
Add:  Dilutive effects of assumed vesting of performance based restricted stock		51,581		73,552
Add:  Dilutive effects of assumed vesting of restricted stock units		38,749		—
Average shares and dilutive potential common shares		9,272,822		8,398,444
Dilutive earnings per common share	$	6.45	$	4.66

All stock options and performance based restricted stock units were considered in computing diluted earnings per common share for the years ended December 31, 2021 and 2020. For the years ended December 31, 2021 and 2020, 174,668 and 33,615, respectively, of restricted stock units were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive.