EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

EARNINGS PER SHARELCNB 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 FASB 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 with proceeds used to purchase treasury shares at the average market price for the period.

Earnings per share for the years ended December 31 were calculated as follows (in thousands, except share and per share data):


	2022		2021	2020
Net income	$	22,128	20,974	20,075
Less allocation of earnings and dividends to participating securities	114		75	45
Net income allocated to common shareholders	$	22,014	20,899	20,030

Weighted average common shares outstanding, gross	11,469,676		12,635,013	12,943,622
Less average participating securities	58,695		45,408	29,345
Weighted average number of shares outstanding used in the calculation of basic earnings per common share	11,410,981		12,589,605	12,914,277
Add dilutive effect of:
Stock options	—		8	307

Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share	11,410,981		12,589,613	12,914,584

Earnings per common share:
Basic	$	1.93	1.66	1.55
Diluted	1.93		1.66	1.55