Earnings per Common Share

3 Months Ended

Mar. 31, 2023

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 months ended March 31, 2023 and March 31, 2022.

	Three months ended
	March 31,
	2023		2022
Earnings per common share - basic:
Income available to common shareholders (in thousands):
Net income	$	6,304	$	7,674
Less: Income attributable to unvested restricted stock awards		(23)		(36)
Net income available to common shareholders	$	6,281	$	7,638
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock		14,117,981		13,847,560
Less: Unvested restricted stock		(50,934)		(64,526)
Weighted-average common shares outstanding - basic		14,067,047		13,783,034
Earnings per common share - basic	$	0.45	$	0.55
Earnings per common share - diluted:
Income available to common shareholders (in thousands):
Net income	$	6,304	$	7,674
Less: Income attributable to unvested restricted stock awards		(23)		(36)
Net income available to common shareholders	$	6,281	$	7,638
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock		14,117,981		13,847,560
Less: Unvested restricted stock		(50,934)		(64,526)
Plus: Effect of dilutive options		89,677		208,658
Weighted-average common shares outstanding - diluted		14,156,724		13,991,692
Earnings per common share - diluted	$	0.44	$	0.55

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 March 31, 2023 were included in computing diluted earnings per share for the three month period ended March 31, 2023, as none had anti-dilutive effects. All stock options outstanding as of March 31, 2022 were included in computing diluted earnings per share for the three month period ended March 31, 2022, as none had anti-dilutive effects.