Earnings Per Share

9 Months Ended

Sep. 30, 2021

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:


(In thousands except share and per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Basic
Net income	$	6,805	$	5,781	$	20,902	$	18,765
Weighted-average common shares outstanding	14,040,089		14,348,151		14,203,369		14,373,243
Basic earnings per share	$	.48	$	.40	$	1.47	$	1.31

Diluted
Net income	$	6,805	$	5,781	$	20,902	$	18,765
Weighted-average common shares outstanding	14,040,089		14,348,151		14,203,369		14,373,243
Effect of dilutive restricted stock and stock appreciation rights	237,080		198,336		239,016		200,723
Weighted-average common shares outstanding assuming dilution	14,277,169		14,546,487		14,442,385		14,573,966
Diluted earnings per share	$	.48	$	.40	$	1.45	$	1.29