OUTSTANDING SHARES AND EARNINGS PER SHARE

9 Months Ended

Sep. 30, 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 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 and nine months ended September 30, 2023 and 2022 (dollars in thousands except per share amounts):

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Basic earnings per share:
Net income	$	4,619	$	4,568	$	14,672	$	11,155
Weighted average common shares outstanding		14,465,191		14,404,438		14,455,772		14,394,959
Basic EPS	$	0.32	$	0.32	$	1.01	$	0.77
Diluted earnings per share:
Net income	$	4,619	$	4,568	$	14,672	$	11,155
Weighted average common shares outstanding		14,465,191		14,404,438		14,455,772		14,394,959
Effect of dilutive shares		160,012		150,672		129,448		162,748
Adjusted weighted average common shares outstanding		14,625,203		14,555,110		14,585,220		14,557,707
Diluted EPS	$	0.32	$	0.31	$	1.01	$	0.77

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 338,346 shares and 513,058 shares for the three months ended September 30, 2023 and 2022, respectively. Unvested 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 0 shares and 74,522 shares for the three months ended September 30, 2023 and 2022, respectively. 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 454,174 shares and 413,335 shares for the nine months ended September 30, 2023 and 2022, respectively. Unvested 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 44,982 shares and 61,966 shares for the nine months ended September 30, 2023 and 2022, respectively.