Earnings per Common Share

9 Months Ended

Sep. 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 nine months ended September 30, 2022 and September 30, 2021.

	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Earnings per common share - basic:
Income available to common shareholders (in thousands):
Net income	$	8,045	$	6,761	$	23,601	$	17,914
Less: Income attributable to unvested restricted stock awards		(33)		(30)		(103)		(85)
Net income available to common shareholders	$	8,012	$	6,731	$	23,498	$	17,829
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock		14,047,746		13,641,330		13,963,307		13,635,404
Less: Unvested restricted stock		(58,332)		(60,792)		(60,983)		(64,955)
Weighted-average common shares outstanding - basic		13,989,414		13,580,538		13,902,324		13,570,449
Earnings per common share - basic	$	0.57	$	0.50	$	1.69	$	1.31
Earnings per common share - diluted:
Income available to common shareholders (in thousands):
Net income	$	8,045	$	6,761	$	23,601	$	17,914
Less: Income attributable to unvested restricted stock awards		(33)		(30)		(103)		(85)
Net income available to common shareholders	$	8,012	$	6,731	$	23,498	$	17,829
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock		14,047,746		13,641,330		13,963,307		13,635,405
Less: Unvested restricted stock		(58,332)		(60,792)		(60,983)		(64,955)
Plus: Effect of dilutive options		118,872		302,566		163,563		294,776
Weighted-average common shares outstanding - diluted		14,108,286		13,883,104		14,065,887		13,865,226
Earnings per common share - diluted	$	0.57	$	0.48	$	1.67	$	1.29

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 September 30, 2022 were included in computing diluted earnings per share for the three and nine month periods ended September 30, 2022, as none had anti-dilutive effects. All stock options outstanding as of September 30, 2021 were included in computing diluted earnings per share for the three month period ended September 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 nine months September 30, 2021 because their effects were anti-dilutive.