Earnings Per Common Share

3 Months Ended

Mar. 31, 2022

Earnings per Common Share

LCNB has granted restricted stock awards with non-forfeitable dividend rights, which are considered participating securities. Accordingly, earnings per share is computed using the two-class method as required by ASC 260-10-45. Basic earnings per common share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. Diluted earnings per common share is adjusted for the dilutive effects of stock options, warrants, and restricted stock. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock options and warrants with proceeds used to purchase treasury shares at the average market price for the period.

Earnings per share for the three months ended March 31, 2022 and 2021 were calculated as follows (dollars in thousands, except share and per share data):


	Three Months Ended March 31,
		2022		2021
Net income		$	4,523	5,240
Less allocation of earnings and dividends to participating securities		24		18
Net income allocated to common shareholders		$	4,499	5,222

Weighted average common shares outstanding, gross		11,878,451		12,840,782
Less average participating securities		59,837		45,958
Weighted average number of shares outstanding used in the calculation of basic earnings per common share		11,818,614		12,794,824
Add dilutive effect of:
Stock options		—		28
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share		11,818,614		12,794,852

Earnings per common share:
Basic		$	0.38	0.41
Diluted		0.38		0.41

There were no anti-dilutive stock options outstanding at March 31, 2022 or 2021.