Earnings Per Share

9 Months Ended

Sep. 30, 2022

Note 14 — Earnings Per Share

The two-class method is used 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. Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that shared in earnings.

The following table presents the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2022 and 2021:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands, except per share data)				(In thousands, except per share data)
Basic EPS:
Net income attributable to common stockholders	$	9,983	$	8,022	$	23,749	$	20,871
Less: undistributed earnings attributable to participating securities		152		3,030		362		7,884
Net earnings attributable to common stock	$	9,831	$	4,992	$	23,387	$	12,987
Weighted average common shares outstanding		31,922		20,090		31,910		20,088
Basic earnings per common share	$	0.31	$	0.25	$	0.73	$	0.65
Diluted EPS:
Net income attributable to common stockholders	$	9,983	$	8,022	$	23,749	$	20,871
Weighted average common shares outstanding		31,922		20,090		31,910		20,088
Add dilutive effects for assumed conversion of Series A preferred stock		—		11,688		—		11,688
Add dilutive effects for warrants		2,061		2,157		2,058		1,909
Add dilutive effects for stock options		6		5		5		2
Add dilutive effects of unvested restricted stock awards		210		272		180		171
Weighted average diluted common shares outstanding		34,199		34,212		34,153		33,858
Diluted income per common share	$	0.29	$	0.23	$	0.70	$	0.62

The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would have been anti-dilutive (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Stock options		773		773		773		773
Share equivalents excluded from EPS		773		773		773		773