Earnings Per Share

9 Months Ended

Sep. 30, 2023

Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock. 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.

Stock options, where the exercise price was greater than the average market price of the common shares, were excluded from the computation of diluted earnings per common share because the result would have been antidilutive. There were no stock options outstanding as of September 30, 2023 and 2022. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share.


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands - except per share amounts)	2023		2022		2023		2022
Distributed earnings allocated to common stock	$	7,900	$	7,890	$	23,694	$	23,230
Undistributed earnings allocated to common stock	24,707		24,571		71,894		65,489
Net earnings allocated to common stock	32,607		32,461		95,588		88,719
Net earnings allocated to participating securities	332		276		910		722
Net income allocated to common stock and participating securities	$	32,939	$	32,737	$	96,498	$	89,441

Weighted average shares outstanding for basic earnings per common share	24,660,508		24,656,736		24,677,914		24,697,106
Dilutive effect of stock compensation	—		—		—		—
Weighted average shares outstanding for diluted earnings per common share	24,660,508		24,656,736		24,677,914		24,697,106

Basic earnings per common share	$	1.32	$	1.32	$	3.87	$	3.59
Diluted earnings per common share	$	1.32	$	1.32	$	3.87	$	3.59