Earnings per Common Share

6 Months Ended

Jun. 30, 2022

Earnings per Common Share

Earnings per Common Share

Note 9— Earnings per Common Share

Earnings per common share is calculated in accordance with ASC 260 - Earnings Per Share, which provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.

Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of voting common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

The following table summarizes the computation of earnings per share for the three and six months ended June 30, 2022 and June 30, 2021.

	Three months ended				Six months ended
	June 30,				June 30,
	2022		2021		2022		2021
Earnings per common share - basic:
Income available to common shareholders (in thousands):
Net income	$	7,882	$	6,079	$	15,556	$	11,153
Less: Income attributable to unvested restricted stock awards		(34)		(29)		(70)		(55)
Net income available to common shareholders	$	7,848	$	6,050	$	15,486	$	11,098
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock		13,992,414		13,637,112		13,920,387		13,632,393
Less: Unvested restricted stock		(60,158)		(64,333)		(62,330)		(67,073)
Weighted-average common shares outstanding - basic		13,932,256		13,572,779		13,858,057		13,565,320
Earnings per common share - basic	$	0.56	$	0.45	$	1.11	$	0.82
Earnings per common share - diluted:
Income available to common shareholders (in thousands):
Net income	$	7,882	$	6,079	$	15,556	$	11,153
Less: Income attributable to unvested restricted stock awards		(34)		(28)		(69)		(54)
Net income available to common shareholders	$	7,848	$	6,051	$	15,487	$	11,099
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock		13,992,414		13,637,112		13,920,387		13,632,393
Less: Unvested restricted stock		(60,158)		(64,333)		(62,330)		(67,073)
Plus: Effect of dilutive options		152,904		295,368		184,148		287,616
Weighted-average common shares outstanding - diluted		14,085,160		13,868,147		14,042,205		13,852,936
Earnings per common share - diluted	$	0.56	$	0.44	$	1.10	$	0.80

Outstanding options to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. All stock options outstanding as of June 30, 2022 were included in computing diluted earnings per share for the three and six month periods ended June 30, 2022, as none had anti-dilutive effects. All stock options outstanding as of June 30, 2021 were included in computing diluted earnings per share for the three month period ended June 30, 2021, as none had anti-dilutive effects. Stock options representing 15,000 weighted average shares were not included in computing diluted earnings per share for the six months June 30, 2021 because their effects were anti-dilutive.