EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 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 September 30, 2022, the shares of common stock underlying the RSUs awarded between 2020 and 2022 under the 2019 and 2022 Incentive Plans (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.

NOTE 10 – EARNINGS PER COMMON SHARE (CONTINUED)

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				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Numerator for basic and diluted earnings per share:
Net income	$	7,221	$	6,212	$	33,346	$	32,501
Deduct net income attributable to non-controlling interests		(17)		(153)		(52)		(151)
Deduct earnings allocated to unvested restricted stock (a)		(320)		(318)		(1,134)		(1,108)
Net income available for common stockholders: basic and diluted	$	6,884	$	5,741	$	32,160	$	31,242
Denominator for basic earnings per share:
Weighted average number of common shares outstanding		20,340		20,115		20,361		20,044
Effect of dilutive securities: RSUs		76		158		111		154
Denominator for diluted earnings per share:
Weighted average number of shares		20,416		20,273		20,472		20,198

Earnings per common share, basic	$	.34	$	.29	$	1.58	$	1.56
Earnings per common share, diluted	$	.34	$	.28	$	1.57	$	1.55

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

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 and Nine Months Ended September 30, 2022:
	Total Number	Shares Included Based on (a)
	of Underlying	Return on	Stockholder		Shares
Date of Award (b)	Shares	Capital Metric	Return Metric	Total	Excluded (c)
July 1, 2022	85,350	20,210	—	20,210	65,140
August 3, 2021	80,700	40,350	—	40,350	40,350
August 3, 2020	75,026	37,513	37,513	75,026	—
Totals	241,076	98,073	37,513	135,586	105,490


Three and Nine Months Ended September 30, 2021:
	Total Number	Shares Included Based on (a)
	of Underlying	Return on	Stockholder		Shares
Date of Award (b)	Shares (d)	Capital Metric	Return Metric	Total	Excluded (c)
August 3, 2021	80,700	23,375	17,722	41,097	39,603
August 3, 2020	75,026	37,513	37,513	75,026	—
July 1, 2019 (e)	75,026	37,513	37,513	75,026	—
Totals	230,752	98,401	92,748	191,149	39,603

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(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 September 30 of the applicable period.

(b)	The RSUs awarded in 2022, 2021 and 2020 vest, subject to satisfaction of the applicable market and/or performance conditions, as of June 30, 2025, 2024 and 2023, respectively (see Note 11).

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

(d)	During 2019, 2,750 shares of the 2019 award were forfeited.

(e)	With respect to the RSUs awarded July 1, 2019, 64,488 shares were deemed to have vested and the balance of 10,538 shares were forfeited in June 2022. The vested shares were issued in August 2022 (see Note 11).