Earnings Per Common Share

6 Months Ended

Jun. 30, 2023

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 No. 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 and six months ended June 30, 2023 and 2022 were calculated as follows (dollars in thousands, except share and per share data):


	Three Months Ended June 30,			Six Months Ended June 30,
	2023		2022	2023		2022
Net income	$	4,694	5,618	8,851		10,141
Less allocation of earnings and dividends to participating securities	33		29	63		53
Net income allocated to common shareholders	$	4,661	5,589	8,788		10,088

Weighted average common shares outstanding, gross	11,135,325		11,396,119	11,202,300		11,635,949
Less average participating securities	79,017		58,314	79,929		59,076
Adjusted weighted average number of shares outstanding used in the calculation of basic and diluted earnings per common share	11,056,308		11,337,805	11,122,371		11,576,873

Earnings per common share:
Basic	$	0.42	0.49	$	0.79	0.87
Diluted	0.42		0.49	0.79		0.87