EPS

12 Months Ended

Dec. 31, 2022

EPS

The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below:


	For the Year Ended December 31,
(In thousands, except number of shares and per share data)	2022		2021		2020
Net income	$	61,439	$	69,014	$	59,486
Dividends and undistributed earnings allocated to participating securities(1)	(162)		(190)		(149)
Net income available to common shareholders	$	61,277	$	68,824	$	59,337
Weighted-average common shares outstanding for basic EPS	14,644,170		14,903,855		14,985,235
Dilutive effect of stock-based awards(2)	56,840		67,723		38,532
Weighted-average common and potential common shares for diluted EPS	14,701,010		14,971,578		15,023,767
Earnings per common share:
Basic EPS	$	4.18	$	4.62	$	3.96
Diluted EPS	$	4.17	$	4.60	$	3.95
Awards excluded from the calculation of diluted EPS(3):
Performance-based share units	—		2,403		1,849
Stock options	—		—		1,000

(1) Represents dividends paid and undistributed earnings allocated to non-vested stock-based awards that contain non-forfeitable rights to dividends.

(2) Represents the assumed dilutive effect of unexercised and/or unvested stock options, restricted shares and restricted share units, and contingently issuable performance-based awards utilizing the treasury stock method.

(3) Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock, and, therefore, are considered anti-dilutive.

Non-vested stock-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of the Company’s non-vested stock-based awards qualify as participating securities.

Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period, excluding participating non-vested stock-based awards. Diluted EPS is computed in a similar manner, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method.