EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

NOTE 13 – EARNINGS PER SHARE

ASC 260, Earnings Per Share, requires unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share. The Company has granted restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s outstanding restricted stock units were vested. For the three and nine months ended September 30, 2020, the restricted stock units were considered anti-dilutive and excluded from the calculation of common stock equivalents. There were no restricted stock units outstanding during the three and nine months ended September 30, 2019.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars in thousands)
Numerator:
Net income	$	10,563	$	17,437	$	24,203	$	50,778
Earnings allocated to unvested restricted stock units		(28)		—		(62)		—
Numerator for earnings per share - basic and diluted	$	10,535	$	17,437	$	24,141	$	50,778

Denominator:
Weighted average common shares outstanding		27,457,306		18,027,512		27,457,306		18,027,512
Dilutive effect of outstanding restricted stock units		—		—		—		—
Weighted average common shares outstanding, including all dilutive potential shares		27,457,306		18,027,512		27,457,306		18,027,512

Earnings per share - Basic	$	0.38	$	0.97	$	0.88	$	2.82
Earnings per share - Diluted	$	0.38	$	0.97	$	0.88	$	2.82