Common Stock and Earnings per Share

12 Months Ended

Dec. 31, 2022

The table below shows activity in the outstanding shares of the Company’s common stock during 2022.


			2022
Shares outstanding at January 1			13,734,295
Issuance of common stock:
Employee restricted stock grants			18,160
Employee restricted stock units vested			2,002
Performance-based stock vested			11,029
Employee SARs exercised			12,668
Directors’ stock grants			22,699
Shares repurchased			(130,374)
Shares forfeited			(823)
Shares outstanding at December 31			13,669,656

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. Under the treasury stock method, stock appreciation rights (“SARs”) are dilutive when the average market price of the Company’s common stock, combined with the effect of any unamortized compensation expense, exceeds the SAR price during a period.

The calculations of basic and diluted earnings per share are as follows:


	December 31,
(In thousands except share and per share data)	2022		2021		2020
Basic:
Net income	$	34,904	$	28,604	$	25,176
Weighted average common shares outstanding	13,552,503		14,091,773		14,364,406
Basic earnings per share	$	2.58	$	2.03	$	1.75
Diluted:
Net income	$	34,904	$	28,604	$	25,176
Weighted average common shares outstanding	13,552,503		14,091,773		14,364,406
Effect of dilutive restricted stock, performance based restricted stock (“PBRS”), and SARs	255,526		238,103		202,541
Weighted average common shares outstanding assuming dilution	13,808,029		14,329,876		14,566,947
Diluted earnings per share	$	2.53	$	2.00	$	1.73