EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2023

The Company has granted certain 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 from the Company’s outstanding restricted stock units and performance restricted stock units.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Numerator:
Net income	$	19,715	$	15,627	$	47,396	$	43,316
Earnings allocated to participating securities	(10)		(17)		(26)		(51)
Numerator for earnings per share - basic and diluted	$	19,705	$	15,610	$	47,370	$	43,265

Denominator:
Weighted average common shares outstanding	31,829,250		28,787,662		31,598,650		28,887,757
Dilutive effect of outstanding restricted stock units	137,187		72,643		102,574		56,761
Weighted average common shares outstanding, including all dilutive potential shares	31,966,437		28,860,305		31,701,224		28,944,518

Earnings per share - Basic	$	0.62	$	0.54	$	1.50	$	1.50
Earnings per share - Diluted	$	0.62	$	0.54	$	1.49	$	1.49