Common Stock and Earnings per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Common Stock and Earnings per Share

Common Stock and Earnings per Share

The table below shows activity in the outstanding shares of the Company’s common stock during 2023.

	2023
Shares outstanding at January 1	13,669,656
Issuance of common stock:
Employee restricted stock grants	12,780
Employee restricted stock units vested	9,843
Performance-based stock vested	15,646
Employee SARs exercised	2,974
Directors’ stock grants	22,415
Shares repurchased	(150,541)
Shares forfeited	(398)
Shares outstanding at December 31	13,582,375

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)	2023		2022		2021
Basic:
Net income	$	30,059	$	34,904	$	28,604
Weighted average common shares outstanding	13,530,005		13,552,503		14,091,773
Basic earnings per share	$	2.22	$	2.58	$	2.03
Diluted:
Net income	$	30,059	$	34,904	$	28,604
Weighted average common shares outstanding	13,530,005		13,552,503		14,091,773
Effect of dilutive restricted stock, performance based restricted stock  (“PBRS”), and SARs	286,011		255,526		238,103
Weighted average common shares outstanding assuming dilution	13,816,016		13,808,029		14,329,876
Diluted earnings per share	$	2.18	$	2.53	$	2.00