EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

EARNINGS PER SHARE

EARNINGS PER SHARE

4. EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilutive effect on EPS that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock, increasing the total number of shares outstanding. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.

The following tables set forth the computation of basic and diluted earnings per share:

(Amounts in thousands, except earnings per share data)	Three Months Ended September 30,
	2022		2021
Net income	$	2,120	$	1,897
Weighted-average common shares outstanding		5,003		5,000
Basic earnings per share		0.42		0.38
Weighted-average common shares outstanding	$	5,003	$	5,000
Common stock equivalents due to effect of stock options		9		11
Total weighted-average common shares and equivalents	$	5,012	$	5,011
Diluted earnings per share	$	0.42	$	0.38
Anti-dilutive stock options outstanding		—		—

(Amounts in thousands, except earnings per share data)	Nine months ended September 30,
	2022		2021
Net income	$	6,218	$	5,271
Weighted-average common shares outstanding		4,999		5,008
Basic earnings per share		1.24		1.05
Weighted-average common shares outstanding	$	4,999	$	5,008
Common stock equivalents due to effect of stock options		9		9
Total weighted-average common shares and equivalents	$	5,008	$	5,017
Diluted earnings per share	$	1.24	$	1.05
Anti-dilutive stock options outstanding		1		—