EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2022

NOTE 10 – EARNINGS PER COMMON SHARE

Basic earnings per share was determined by dividing net income allocable to common stockholders for each period by the weighted average number of shares of common stock outstanding during the applicable period. Net income is also allocated to the unvested restricted stock outstanding during each period, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. As of March 31, 2022, the shares of common stock underlying the RSUs awarded between 2019 and 2021 under the 2019 Incentive Plan (see Note 11) are excluded from the basic earnings per share calculation, as these units are not participating securities.

Diluted earnings per share reflects the potential dilution that could occur if securities or other rights exercisable for, or convertible into, common stock were exercised or converted or otherwise resulted in the issuance of common stock that shared in the earnings of the Company.

The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (amounts in thousands, except per share amounts):


	Three Months Ended
	March 31,
	2022		2021
Numerator for basic and diluted earnings per share:
Net income	$	9,340	$	2,957
(Deduct) add net (income) loss attributable to non-controlling interests		(17)		5
Deduct earnings allocated to unvested restricted stock (a)		(328)		(325)
Net income available for common stockholders: basic and diluted	$	8,995	$	2,637
Denominator for basic earnings per share:
Weighted average number of common shares outstanding		20,379		20,003
Effect of dilutive securities: RSUs		162		58
Denominator for diluted earnings per share:
Weighted average number of shares		20,541		20,061

Earnings per common share, basic and diluted	$	.44	$	.13

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(a)	Represents an allocation of distributed earnings to unvested restricted stock that, as participating securities, are entitled to receive dividends.

NOTE 10 – EARNINGS PER COMMON SHARE (CONTINUED)

The following table identifies the number of shares of common stock underlying the RSUs that are included in the calculation, on a diluted basis, of the weighted average number of shares of common stock for such periods:


Three Months Ended March 31, 2022:
	Total Number	Shares Included Based on (a)
	of Underlying	Return on	Stockholder		Shares
Date of Award	Shares (b)(c)	Capital Metric	Return Metric	Total	Excluded
August 3, 2021	80,700	40,350	40,350	80,700	—
August 3, 2020	75,026	37,513	37,513	75,026	—
July 1, 2019	75,026	37,513	37,513	75,026	—
Totals	230,752	115,376	115,376	230,752	—


Three Months Ended March 31, 2021:
	Total Number	Shares Included Based on (a)
	of Underlying	Return on	Stockholder		Shares
Date of Award	Shares (b)(c)	Capital Metric	Return Metric	Total	Excluded (d)
August 3, 2020	75,026	37,513	37,513	75,026	—
July 1, 2019	75,026	23,970	—	23,970	51,056
July 1, 2018 (e)	73,750	25,306	—	25,306	48,444
Totals	223,802	86,789	37,513	124,302	99,500

(a)	Reflects the number of shares underlying RSUs that would be issued assuming the measurement date used to determine whether the applicable conditions are satisfied is March 31 of the applicable period.

(b)	The RSUs awarded in 2021, 2020 and 2019 vest, subject to satisfaction of the applicable market and/or performance conditions, as of June 30, 2024, 2023 and 2022, respectively (see Note 11).

(c)	During 2019, 2,750 shares of the 2019 award and 2,500 shares of the 2018 award were forfeited.

(d)	Excluded as the applicable conditions had not been met for these shares at the applicable measurement dates.

(e)	With respect to the RSUs awarded July 1, 2018, all 73,750 shares were deemed to have vested; these shares were issued in August 2021 (see Note 11).