Earnings per Share

9 Months Ended

Sep. 30, 2021

Note 12 – Earnings per Share

We determine basic earnings per share (“EPS”) by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is determined by dividing net income available to common shareholders by the weighted-average number of shares outstanding, increased by both the number of shares that would be issued assuming the exercise of instruments under our incentive stock plan.

The following table presents our calculation of EPS for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands except shares and per share data)	2021		2020		2021		2020
Numerator for basic earnings per share:
Net income	$	11,828	$	6,491	$	29,160	$	25,573
Less: Dividends on preferred stock	—		116		35		345


Net income available to common shareholders - basic	$	11,828	$	6,375	$	29,125	$	25,228

Numerator for diluted earnings per share:



Net income available to common shareholders - diluted	$	11,828	$	6,375	$	29,125	$	25,228

Denominator:
Total weighted-average shares outstanding	11,880,348		11,948,989		11,684,570		11,948,857


Effect of dilutive stock options and restricted stock units	943,961		167,429		881,239		236,280
Total diluted weighted-average shares outstanding	12,824,309		12,116,418		12,565,809		12,185,137



Earnings per share - basic	$	1.00	$	0.53	$	2.49	$	2.11


Earnings per share - diluted	$	0.92	$	0.53	$	2.32	$	2.07

Stock options not included in the computation of diluted EPS because the effect would be antidilutive	179,694		849,589		185,944		815,089