Earnings per Common Share

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2023 and September 30, 2022.

	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
Earnings (Loss) per common share - basic:
Income (Loss) available to common shareholders (in thousands):
Net income (loss)	$	(10,137)	$	8,045	$	656	$	23,601
Less: Income attributable to unvested restricted stock awards		—		(33)		(2)		(103)
Net income (loss) available to common shareholders	$	(10,137)	$	8,012	$	654	$	23,498
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock		14,126,114		14,047,746		14,174,804		13,963,307
Less: Unvested restricted stock		(46,088)		(58,332)		(48,282)		(60,983)
Weighted-average common shares outstanding - basic		14,080,026		13,989,414		14,126,522		13,902,324
Earnings (Loss) per common share - basic	$	(0.72)	$	0.57	$	0.05	$	1.69
Earnings (Loss) per common share - diluted:
Income (loss) available to common shareholders (in thousands):
Net income (loss)	$	(10,137)	$	8,045	$	656	$	23,601
Less: Income attributable to unvested restricted stock awards		—		(33)		(2)		(103)
Net income (loss) available to common shareholders	$	(10,137)	$	8,012	$	654	$	23,498
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock		14,126,114		14,047,746		14,174,804		13,963,307
Less: Unvested restricted stock		(46,088)		(58,332)		(48,282)		(60,983)
Plus: Effect of dilutive options		—		118,872		72,656		163,563
Weighted-average common shares outstanding - diluted		14,080,026		14,108,286		14,199,179		14,065,887
Earnings (Loss) per common share - diluted	$	(0.72)	$	0.57	$	0.05	$	1.67

Outstanding options to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. No stock options outstanding as of September 30, 2023 were included in computing diluted earnings per share for the three months ended September 30, 2023 as the Company reported a net loss and the impact would have been anti-dilutive. All stock options outstanding as of September 30, 2023 were included in computing diluted earnings per share for the nine months ended September 30, 2023, as none had anti-dilutive effects. All stock options outstanding as of September 30, 2022 were included in computing diluted earnings per share for the three and nine months ended September 30, 2022, as none had anti-dilutive effects.