EARNINGS PER SHARE

6 Months Ended

Jun. 30, 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 June 30,				Six months ended June 30,
	2023		2022		2023		2022
Basic
Net income per consolidated statements of income	$	15,561	$	23,189	$	40,637	$	42,210
Less: Earnings allocated to participating securities		(82)		(63)		(170)		(85)
Net income available to common stockholders	$	15,479	$	23,126	$	40,467	$	42,125
Weighted average common shares outstanding including participating securities		11,195,461		10,961,697		11,137,381		10,947,829
Less: Weighted average participating securities		(59,200)		(30,000)		(46,686)		(22,111)
Weighted average common shares outstanding		11,136,261		10,931,697		11,090,695		10,925,718
Basic earnings per common share	$	1.39	$	2.12	$	3.65	$	3.86
Diluted
Net income allocated to common stockholders	$	15,479	$	23,126	$	40,467	$	42,125
Weighted average common shares outstanding for basic earnings per common share		11,136,261		10,931,697		11,090,695		10,925,718
Add: Dilutive effects of assumed exercise of stock options		88,591		180,787		123,773		186,364
Add: Dilutive effects of assumed vesting of performance based restricted stock		53,553		52,004		56,682		63,980
Add: Dilutive effects of assumed vesting of restricted stock units		—		25,319		—		32,930
Average shares and dilutive potential common shares		11,278,405		11,189,807		11,271,150		11,208,992
Dilutive earnings per common share	$	1.37	$	2.07	$	3.59	$	3.76

For the three and six months ended June 30, 2023, 262,624 and 248,231 of restricted stock units, respectively, were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive. All stock options and performance restricted stock units were considered in computing diluted earnings per common share for the three and six months ended June 30, 2023. All stock options, performance restricted stock units, and restricted stock units were considered in computing diluted earnings per common share for the three and six months ended June 30, 2022.