EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2023

Basic earnings per common share is computed by dividing net income, excluding net earnings allocated to participating securities, by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. For the three and nine months ended September 30, 2023 and 2022, there were no outstanding stock options to include in the diluted earnings per common share calculations.

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per common share pursuant to the two-class method. The Corporation has determined that its outstanding unvested time-based stock awards are participating securities.

The computation of basic and diluted earnings per common share is shown below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Basic earnings per common share computation:
Net income per condensed consolidated statements of income	$	12,651	$	15,549	$	40,817	$	44,082
Net earnings allocated to participating securities	(70)		(66)		(222)		(198)
Net earnings allocated to common stock	$	12,581	$	15,483	$	40,595	$	43,884
Distributed earnings allocated to common stock	$	3,645	$	2,936	$	10,969	$	8,815
Undistributed earnings allocated to common stock	8,936		12,547		29,626		35,069
Net earnings allocated to common stock	$	12,581	$	15,483	$	40,595	$	43,884
Weighted average common shares outstanding, including shares considered participating securities	20,969		17,324		21,048		17,024
Less: Average participating securities	(109)		(70)		(109)		(73)
Weighted average shares	20,860		17,254		20,939		16,951
Basic earnings per common share	$	0.60	$	0.90	$	1.94	$	2.59
Diluted earnings per common share computation:
Net earnings allocated to common stock	$	12,581	$	15,483	$	40,595	$	43,884
Weighted average common shares outstanding for basic earnings per common share	20,860		17,254		20,939		16,951
Add: Dilutive effect of stock compensation	40		34		40		33
Weighted average shares and dilutive potential common shares	20,900		17,288		20,979		16,984
Diluted earnings per common share	$	0.60	$	0.90	$	1.94	$	2.59