Earnings per Share

9 Months Ended

Sep. 30, 2023

Note 4:

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 common 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:

	As of and for the three months ended September 30,				As of and for the nine months ended September 30,
	2023		2022		2023		2022
(Dollars in thousands, except per share amounts)
Numerator
Net income	$	7,853	$	8,041	$	27,206	$	21,249

Denominator
Weighted-average shares outstanding for basic earnings per share		9,158,027		9,100,789		9,152,788		9,095,724
Dilutive effect of stock compensation ⁽¹⁾		115,568		108,965		109,215		99,204
Denominator for diluted earnings per share		9,273,595		9,209,754		9,262,003		9,194,928

Earnings per common share
Basic	$	0.86	$	0.88	$	2.97	$	2.34
Diluted	$	0.85	$	0.87	$	2.94	$	2.31

(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 5,000 and 3,000 for the three month periods ended September 30, 2023 and 2022, respectively, and 5,000 and 3,000 for the nine month periods ended September 30, 2023 and 2022, respectively; Restricted stock units of 113,000 and 0 for the three month periods ended September 30, 2023 and 2022, respectively, and 156,186 and 0 for the nine month periods ended September 30, 2023 and 2022, respectively.