EPS

6 Months Ended

Jun. 30, 2023

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


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except number of shares and per share data)	2023		2022		2023		2022
Net income	$	12,389	$	15,026	$	25,116	$	31,821
Dividends and undistributed earnings allocated to participating securities(1)	(17)		(40)		(41)		(83)
Net income available to common shareholders	$	12,372	$	14,986	$	25,075	$	31,738
Weighted-average common shares outstanding for basic EPS	14,564,282		14,651,851		14,568,680		14,696,323
Dilutive effect of stock-based awards(2)	40,034		52,800		43,692		60,739
Weighted-average common and potential common shares for diluted EPS	14,604,316		14,704,651		14,612,372		14,757,062
Earnings per common share:
Basic EPS	$	0.85	$	1.02	$	1.72	$	2.16
Diluted EPS	$	0.85	$	1.02	$	1.72	$	2.15
Awards excluded from the calculation of diluted EPS(3):

Performance-based awards	9,111		305		10,705		76

(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, 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.