Earnings per share

12 Months Ended

Dec. 31, 2024

13. Earnings per share

All of the Company’s shares (including non-vested restricted stock issued under the Company’s equity compensation plans) participate equally in dividend distributions and in undistributed earnings.

The Company applies the two-class method of computing earnings per share (EPS) as the unvested share- based payment awards that contain rights to receive non forfeitable dividends are participating securities. Dividends declared during the period for non-vested restricted stock as well as undistributed earnings allocated to non-vested stock are deducted from net income for the purpose of the computation of basic earnings per share in accordance with the two-class method. The denominator of the basic earnings per common share excludes any non-vested shares as such they are not considered outstanding until the time-based vesting restriction has elapsed.

For purposes of calculating diluted earnings per share, dividends declared during the period for non-vested restricted stock and undistributed earnings allocated to non-vested stock are not deducted from net income as reported since such calculation assumes non-vested restricted stock is fully vested from the grant date.

The Company calculates basic and diluted earnings per share as follows:


	2022				2023				2024
	Basic EPS		Diluted EPS		Basic EPS		Diluted EPS		Basic EPS		Diluted EPS
Numerator
Net income		34,253,365		34,253,365		51,936,829		51,936,829		69,862,177		69,862,177
Less: Undistributed earnings allocated to non-vested shares		216,168		216,168		813,111		811,596		2,701,759		2,694,694

Net income attributable to common shareholders		34,037,197		34,037,197		51,123,689		51,125,233		67,160,418		67,167,483

Denominator
Weighted average number of shares, basic		37,961,560		37,961,560		37,166,449		37,166,449		35,237,059		35,237,059

Effect of dilutive shares		—		113		—		70,502		—		96,101

Weighted average number of shares, basic		37,961,560		37,961,673		37,166,449		37,236,951		35,237,059		35,333,160

Earnings per share		0.90		0.90		1.38		1.37		1.91		1.90

For 2022, 2023 and 2024 the most dilutive method was the two-class method and the diluted earnings per share reflects the potential dilution of the unexercised options to acquire common shares (Note 12) calculated using the treasury stock method which resulted in 113 incremental shares, 70,502 incremental shares and 96,101 incremental shares, respectively. Securities that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS, because to do so would have anti-dilutive effect, are any incremental shares resulting from the non-vested restricted share awards (Note 12) calculated using the treasury stock method.