EARNINGS PER SHARE

9 Months Ended

Sep. 30, 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 September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Basic
Net income per consolidated statements of income	$	24,955	$	16,215	$	67,165	$	41,668
Less: Earnings allocated to participating securities		(68)		(508)		(152)		(568)
Net income available to common stockholders	$	24,887	$	15,707	$	67,013	$	41,100
Weighted average common shares outstanding including participating securities		10,961,697		8,897,910		10,952,452		8,518,639
Less: Weighted average participating securities		(30,000)		(278,937)		(24,741)		(116,045)
Weighted average common shares outstanding		10,931,697		8,618,973		10,927,711		8,402,594
Basic earnings per common share	$	2.28	$	1.82	$	6.13	$	4.89
Diluted
Net income allocated to common stockholders	$	24,887	$	15,707	$	67,013	$	41,100
Weighted average common shares outstanding for basic earnings per common share		10,931,697		8,618,973		10,927,711		8,402,594
Add: Dilutive effects of assumed exercise of stock options		172,371		173,909		182,417		161,932
Add: Dilutive effects of assumed vesting of performance based restricted stock		45,636		53,571		53,237		41,932
Add: Dilutive effects of assumed vesting of restricted stock units		27,448		46,651		41,370		29,939
Average shares and dilutive potential common shares		11,177,152		8,893,104		11,204,735		8,636,397
Dilutive earnings per common share	$	2.23	$	1.77	$	5.98	$	4.76

All stock options and performance based restricted stock units were considered in computing diluted earnings per common share for the three and nine months ended September 30, 2022 and 2021.