Note 11 – Earnings Per Share

The earnings per share, both basic and diluted, are included below as of September 30:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Basic earnings per share:
Weighted-average common shares outstanding		29,899,063		29,747,078		29,880,511		29,718,191
Net income	$	12,173	$	9,642	$	29,919	$	25,392
Basic earnings per share	$	0.41	$	0.32	$	1.00	$	0.85

Diluted earnings per share:
Weighted-average common shares outstanding		29,899,063		29,747,078		29,880,511		29,718,191
Dilutive effect of unvested restricted awards		539,270		563,781		510,454		525,627
Dilutive effect of stock options and warrants		-		73,032		-		53,476
Diluted average common shares outstanding		30,438,333		30,383,891		30,390,965		30,297,294
Net Income	$	12,173	$	9,642	$	29,919	$	25,392
Diluted earnings per share	$	0.40	$	0.32	$	0.98	$	0.84

The above 2018 earnings per share calculation also includes a warrant for 815,339 shares of common stock, at an exercise price of $13.43 per share, that was outstanding as of September 30, 2018, and was considered dilutive. The ten-year warrant was issued in 2009, and was sold at auction by the U.S. Treasury in June 2013 to a third party investor. This warrant was not included as a dilutive factor as of September 30, 2019, due to its cashless exercise on January 16, 2019. As of the date of exercise, the Company’s closing market stock price was $14.23 per share, resulting in 45,836 shares being issued. The cashless warrant exercise resulted in a net $313,000 reduction to treasury stock as these shares were issued from stock held by the Company.