OUTSTANDING SHARES AND EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2023

OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]

OUTSTANDING SHARES AND EARNINGS PER SHARE

10.  OUTSTANDING SHARES AND EARNINGS PER SHARE

On January 26, 2023, the Board of Directors of the Company declared a 5% stock dividend payable on March 24, 2023 to shareholders of record as of February 28, 2023.  All income per share amounts have been adjusted to give retroactive effect to stock dividends.

Earnings Per Share (EPS)

Basic EPS includes no dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the respective period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding plus dilutive shares for the quarter.  Diluted shares include all common stock equivalents (“in-the-money” stock options, unvested restricted stock, stock units, warrants and rights, convertible bonds and preferred stock), which reflects the potential dilution of securities that could share in the earnings of the Company.

The following table presents a reconciliation of basic and diluted EPS for the three months ended March 31, 2023 and 2022 (dollars in thousands except per share amounts):

	Three months ended March 31,
	2023		2022
Basic earnings per share:
Net income	$	5,489	$	3,041
Weighted average common shares outstanding		14,423,553		14,373,555
Basic EPS	$	0.38	$	0.21
Diluted earnings per share:
Net income	$	5,489	$	3,041
Weighted average common shares outstanding		14,423,553		14,373,555
Effect of dilutive shares		135,165		183,270
Adjusted weighted average common shares outstanding		14,558,718		14,556,825
Diluted EPS	$	0.38	$	0.21

Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 513,058 shares and 313,255 shares for the three months ended March 31, 2023 and March 31, 2022, respectively. Restricted stock which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 31,184 shares and 36,433 shares for the three months ended March 31, 2023 and March 31, 2022, respectively.