EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2023

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 7 — 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,
	2023		2022
Basic
Net income per consolidated statements of income	$	25,076	$	19,021
Less: Earnings allocated to participating securities		(84)		(25)
Net income available to common stockholders	$	24,992	$	18,996
Weighted average common shares outstanding including participating securities		11,081,924		10,934,091
Less: Weighted average participating securities		(37,300)		(14,223)
Weighted average common shares outstanding		11,044,624		10,919,868
Basic earnings per common share	$	2.26	$	1.74
Diluted
Net income allocated to common stockholders	$	24,992	$	18,996
Weighted average common shares outstanding for basic earnings per common share		11,044,624		10,919,868
Add: Dilutive effects of assumed exercise of stock options		—		190,826
Add: Dilutive effects of assumed vesting of performance based restricted stock		58,384		73,561
Add: Dilutive effects of assumed vesting of restricted stock units		—		39,039
Average shares and dilutive potential common shares		11,103,008		11,223,294
Dilutive earnings per common share	$	2.25	$	1.69

For the three months ended March 31, 2023, 262,624 of restricted stock units were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive. All performance restricted stock units were considered in computing diluted earnings per common share for the three months ended March 31, 2022. All stock options, performance restricted stock units, and restricted stock units were considered in computing diluted earnings per common share for the three months ended March 31, 2022.