Common Stock and Earnings per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Common Stock and Earnings per Share

Note 9

Common Stock and Earnings per Share

The table below shows activity in the outstanding shares of the Company’s common stock during 2020.

	2020
Shares outstanding at January 1	14,514,366
Issuance of common stock:
Employee restricted stock grants	7,748
Employee restricted stock unit vests	1,890
Performance-based stock	20,287
Employee SARs exercised	3,484
Directors’ compensation	12,757
Shares repurchased	(162,901	)
Shares forfeited	(4,962	)
Shares outstanding at December 31	14,392,669

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. Anti-dilutive shares are those SARs with prices in excess of the current market value.

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

	December 31,
(In thousands except share and per share data)	2020		2019		2018
Basic:
Net income	$	25,176	$	30,404	$	30,268
Weighted average common shares outstanding		14,364,406		14,434,445		14,675,136
Basic earnings per share	$	1.75	$	2.11	$	2.06
Diluted:
Net income	$	25,176	$	30,404	$	30,268
Weighted average common shares outstanding		14,364,406		14,434,445		14,675,136
Effect of dilutive restricted stock, performance based restricted stock (“PBRS”), and SARs		202,541		257,480		239,066
Weighted average common shares outstanding assuming dilution		14,566,947		14,691,925		14,914,202
Diluted earnings per share	$	1.73	$	2.07	$	2.03