EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2022

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 8 – EARNINGS PER 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).

	Three months ended March 31,
	2022		2021
Basic
Net income per consolidated statements of income	$	19,021	$	12,117
Less: Earnings allocated to participating securities		(25)		(55)
Net income available to common stockholders	$	18,996	$	12,062
Weighted average common shares outstanding including participating securities		10,934,091		8,313,660
Less: Weighted average participating securities		(14,223)		(37,486)
Weighted average common shares outstanding		10,919,868		8,276,174
Basic earnings per common share	$	1.74	$	1.46
Diluted
Net income allocated to common stockholders	$	18,996	$	12,062
Weighted average common shares outstanding for basic earnings per common share		10,919,868		8,276,174
Add: Dilutive effects of assumed exercise of stock options		190,826		141,145
Add: Dilutive effects of assumed vesting of performance based restricted stock		73,561		—
Add: Dilutive effects of assumed vesting of restricted stock units		39,039		—
Average shares and dilutive potential common shares		11,223,294		8,417,319
Dilutive earnings per common share	$	1.69	$	1.43

All stock options and performance based restricted stock units were considered in computing diluted earnings per common share for the three months ended March 31, 2022 and 2021. For the three months ended March 31, 2022 and 2021, 234,332 and 108,178 restricted stock units were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive.