Earnings Per Share

6 Months Ended

Jun. 30, 2021

Note 3:

Earnings Per Share

Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the year.

Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income divided by the weighted average number of commons shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and nonqualified stock options, calculated using the treasury stock method.

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

	For the three months ended June 30,				For the six months ended June 30,
	2021		2020			2021		2020
(Dollars in thousands, except per share amounts)
Numerator
Net income	$	6,105	$	5,036	$	11,209	$	10,087

Denominator
Weighted-average shares outstanding for basic earnings per share		9,050,606		9,232,509		9,050,295		9,598,232
Dilutive effect of stock compensation ⁽¹⁾		23,802		-		16,502		-
Denominator for diluted earnings per share		9,074,408		9,232,509		9,066,797		9,598,232

Earnings per common share
Basic	$	0.67	$	0.54	$	1.24	$	1.05
Diluted	$	0.67	$	0.54	$	1.24	$	1.05

(1) The following have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented: Nonqualified stock options outstanding of 265,750 and 186,500 as of June 30, 2021 and 2020, respectively; Restricted stock units of 27,000 for the six months ended June 30, 2021 and 135,000 for the three and six month periods ended June 30, 2020.