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Earnings per Common Share

3 Months Ended

Mar. 31, 2022

Earnings per Common Share

Earnings per Common Share

Note 9— Earnings per Common Share

Earnings per common share is calculated in accordance with ASC 260 - Earnings Per Share, which provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.

Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of voting common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

The following table summarizes the computation of earnings per share for the three months March 31, 2022 and March 31, 2021.


		Three months ended
		March 31,
		2022			2021
Earnings per common share - basic:
Income available to common shareholders (in thousands):
Net income		$	7,674		$	5,074
Less: Income attributable to unvested restricted stock awards			(36)			(26)
Net income available to common shareholders		$	7,638		$	5,048

Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock			13,847,560			13,627,621
Less: Unvested restricted stock			(64,526)			(69,842)
Weighted-average common shares outstanding - basic			13,783,034			13,557,779

Earnings per common share - basic		$	0.55		$	0.37

Earnings per common share - diluted:
Income available to common shareholders (in thousands):
Net income		$	7,674		$	5,074
Less: Income attributable to unvested restricted stock awards			(36)			(26)
Net income available to common shareholders		$	7,638		$	5,048

Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock			13,847,560			13,627,621
Less: Unvested restricted stock			(64,526)			(69,842)
Plus: Effect of dilutive options			208,658			251,972
Weighted-average common shares outstanding - diluted			13,991,692			13,809,751

Earnings per common share - diluted		$	0.55		$	0.37

Outstanding options to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. All stock options outstanding as of March 31, 2022 were included in computing diluted earnings per share as none had anti-dilutive effects. Stock options representing 15,000 weighted average shares were not included in computing diluted earnings per share at March 31, 2021 because their effects were anti-dilutive.