Shareholders' Equity and Earnings Per Share

9 Months Ended

Sep. 30, 2024

Shareholders' Equity and Earnings Per Share

Earnings Per Share

2) Shareholders’ Equity and Earnings Per Share

Share Repurchase Program – On July 25, 2024, the Company announced that its Board of Directors adopted a share repurchase program (the “Repurchase Program”) under which the Company is authorized to repurchase up to $15,000,000 of the Company’s shares of its issued and outstanding common stock. Unless otherwise suspended or terminated, the Repurchase Program expires on July 31, 2025. The Company did not repurchase any of its common stock during the third quarter of 2024.

Earnings Per Share – Basic earnings per common share is computed by dividing net income by the weighted average common shares outstanding. Diluted earnings per share reflect potential dilution from outstanding stock options using the treasury stock method. Unvested restricted stock units are not considered participating securities and as a result are not considered outstanding under the two class method of computing basic earnings per common share. There were 1,440,168, and 1,841,601 weighted average stock options outstanding for the three months and nine months ended September 30, 2024, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per share. There were 1,905,852 and 1,763,377 weighted average stock options outstanding for the three months and nine months ended September 30, 2023, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per share. There were 1,467 and 493 weighted average RSUs outstanding for the three months and nine months ended September 30, 2024, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per shares. There were no weighted average RSUs outstanding for the three months ended September 30, 2023, and 66,458 weighted average RSUs outstanding for the nine months ended September 30, 2023, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per shares. A reconciliation of these factors used in computing basic and diluted earnings per common share is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
		(Dollars in thousands, except per share amounts)
Net income	$	10,507	$	15,795	$	29,907	$	51,115
Weighted average common shares outstanding
for basic earnings per common share		61,295,877		61,093,289		61,254,138		61,012,315
Dilutive potential common shares		250,280		342,951		243,789		272,275
Shares used in computing diluted earnings per common share		61,546,157		61,436,240	$	61,497,927	$	61,284,590
Basic earnings per share	$	0.17	$	0.26	$	0.49	$	0.84
Diluted earnings per share	$	0.17	$	0.26	$	0.49	$	0.83