EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2023

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE H: EARNINGS PER SHARE

The two class method is used in the calculations of basic and diluted earnings per share. Under the two class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared and participation rights in undistributed earnings. The Company has determined that all of its outstanding non-vested stock awards are participating securities as of June 30, 2023.

Basic earnings per share are computed based on the weighted-average of the common shares outstanding for the period. Diluted earnings per share are based on the weighted-average of the shares outstanding and the assumed exercise of stock options during the year. The dilutive effect of options is calculated using the treasury stock method of accounting. The treasury stock method determines the number of common shares that would be outstanding if all the dilutive options were exercised and the proceeds were used to repurchase common shares in the open market at the average market price for the applicable time period. Weighted-average anti-dilutive stock options outstanding for the three and six months ended June 30, 2023 were immaterial and 0.2 million, respectively, compared to approximately 0.4 million and 0.3 million weighted-average anti-dilutive stock options outstanding for the three and six months ended June 30, 2022, respectively, that were not included in the computation below.

The following is a reconciliation of basic to diluted earnings per share for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(000’s omitted, except per share data)	2023		2022		2023		2022
Net income	$	48,291	$	39,805	$	54,089	$	86,860
Income attributable to unvested stock-based compensation awards		(192)		(125)		(186)		(252)
Income available to common shareholders	$	48,099	$	39,680	$	53,903	$	86,608
Weighted-average common shares outstanding – basic		53,679		53,928		53,760		53,958
Basic earnings per share	$	0.90	$	0.74	$	1.00	$	1.61
Net income	$	48,291	$	39,805	$	54,089	$	86,860
Income attributable to unvested stock-based compensation awards		(192)		(125)		(186)		(252)
Income available to common shareholders	$	48,099	$	39,680	$	53,903	$	86,608
Weighted-average common shares outstanding – basic		53,679		53,928		53,760		53,958
Assumed exercise of stock options		115		293		152		341
Weighted-average common shares outstanding – diluted		53,794		54,221		53,912		54,299
Diluted earnings per share	$	0.89	$	0.73	$	1.00	$	1.60

Stock Repurchase Program

At its December 2022 meeting, the Board of Directors of the Company (the “Board”) approved a new stock repurchase program authorizing the repurchase, at the discretion of senior management, of up to 2,697,000 shares of the Company’s common stock, in accordance with securities and banking laws and regulations, during the twelve-month period starting January 1, 2023. Any repurchased shares will be used for general corporate purposes, including those related to stock plan activities. The timing and extent of repurchases will depend on market conditions and other corporate considerations as determined at the Company’s discretion. There were 400,000 shares of treasury stock purchases made under this authorization during the first six months of 2023 with an average price paid per share of $51.42.

At its December 2021 meeting, the Board approved a stock repurchase program authorizing the repurchase, at the discretion of senior management, of up to 2,697,000 shares of the Company’s common stock, in accordance with securities and banking laws and regulations, during the twelve-month period starting January 1, 2022. There were 250,000 shares of treasury stock purchases made under this authorization in 2022, all of which were repurchased during the first six months of 2022, with an average price paid per share of $65.51.