Earnings Per Share

9 Months Ended

Sep. 30, 2023

Note 3 - Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income by the weighted average number of common shares outstanding for the period adjusted to include the effect of outstanding stock options, if dilutive, using the treasury stock method. Shares issued during any period are weighted for the portion of the period they were outstanding.

The following schedule presents earnings per share data for the three-month periods ended September 30, 2023 and 2022 (in thousands, except per share data):


	Three months ended September 30,
	2023		2022
Net income applicable to common stock	$	7,598	$	6,975
Weighted average number of common shares outstanding		6,295		6,269

Basic earnings per share	$	1.21	$	1.12

Net income applicable to common stock	$	7,598	$	6,975
Weighted average number of common shares outstanding		6,295		6,269
Dilutive effect on common shares outstanding		95		109

Weighted average number of diluted common shares outstanding		6,390		6,378

Diluted earnings per share	$	1.19	$	1.09

The following schedule presents earnings per share data for the nine-month periods ended September 30, 2023 and 2022 (in thousands, except per share data):


	Nine months ended September 30,
	2023		2022
Net income applicable to common stock	$	20,483	$	19,323
Weighted average number of common shares outstanding		6,275		6,345

Basic earnings per share	$	3.26	$	3.05

Net income applicable to common stock	$	20,483	$	19,323
Weighted average number of common shares outstanding		6,275		6,345
Dilutive effect on common shares outstanding		105		130

Weighted average number of diluted common shares outstanding		6,380		6,475

Diluted earnings per share	$	3.21	$	2.98

The following schedule presents stock options granted but not exercised and the amount of share that were anti-dilutive because the weighted average exercise price equaled or exceeded the estimated fair value of our common stock for the three- and nine-month periods ended September 30, 2023 and 2022:


	Three months ended September 30,
	2023				2022
	Options		Weighted Ave Exercise Price		Options		Weighted Ave Exercise Price
Options to purchase		276,704	$	19.56		278,627	$	18.35
Anti-dilutive		95,750	$	32.45		95,750	$	32.45

	Nine months ended September 30,
	2023				2022
	Options		Weighted Ave Exercise Price		Options		Weighted Ave Exercise Price
Options to purchase		280,732	$	19.49		316,513	$	17.73
Anti-dilutive		95,750	$	32.45		95,750	$	32.45