Earnings Per Share

9 Months Ended

Sep. 30, 2023

Earnings Per ShareBasic EPS is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. The Company grants restricted stock awards, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Company's common stock. These restricted stock awards meet the definition of participating

securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS.

Diluted EPS incorporates the potential impact of contingently issuable shares. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under two-class method was more dilutive.

The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the three and nine months ended September 30, 2023 and 2022:



	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands, except share and per share data)	2023		2022		2023		2022
Basic
Net income	$	5,121	$	8,650	$	18,746	$	25,282
Distributed and undistributed earnings allocated to participating securities	(96)		(188)		(379)		(532)
Net income allocated to common shares	$	5,025	$	8,462	$	18,367	$	24,750
Weighted average common shares outstanding	15,131,587		15,195,826		15,149,203		15,158,749
Basic earnings per common share	$	0.33	$	0.56	$	1.21	$	1.63
Diluted
Net income allocated to common shares	$	5,025	$	8,462	$	18,367	$	24,750
Weighted average common shares outstanding for basic earnings per common share	15,131,587		15,195,826		15,149,203		15,158,749
Add: Dilutive effects of assumed exercises of stock options	8,990		79,330		51,409		87,596
Average shares and dilutive potential common shares	15,140,577		15,275,156		15,200,612		15,246,345
Diluted earnings per common share	$	0.33	$	0.55	$	1.21	$	1.62

No share of common stock was antidilutive for the three and nine months ended September 30, 2023 and 2022.