Earnings Per Share

3 Months Ended

Mar. 31, 2023

3. Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock, and are determined using the treasury stock method.

The following table sets forth the weighted average shares outstanding used in the computations of basic and diluted earnings per share.



(in thousands)	Three Months Ended
	March 31,
	2023	2022

Weighted average shares outstanding	8,176	8,203
Less: Unvested restricted shares	(45)	(32)
Basic EPS weighted average shares outstanding	8,131	8,171
Basic EPS weighted average shares outstanding	8,131	8,171
Add: Dilutive effect of stock options and restricted shares	17	25
Diluted EPS weighted average shares outstanding	8,148	8,196

For the three month period ended March 31, 2023, there were 110,350 stock options that were anti-dilutive and thereby excluded from the earnings per share calculations based upon the closing price of the Company’s common stock of $29.42 per share as of March 31, 2023.

For the three month period ended March 31, 2022, there were 74,350 stock options that were anti-dilutive and thereby excluded from the earnings per share calculations based upon the closing price of Norwood common stock of $28.59 per share as of March 31, 2022.