Earnings per share

12 Months Ended

Dec. 31, 2021

Earnings per share

Earnings per share

Note 10. Earnings per Share

The following table presents the basic and diluted earnings per share computations (dollars in thousands except per share data):

	Year Ended December 31,
	2021		2020
Numerator
Net income - basic and diluted	$	12,453	$	8,554
Denominator
Weighted average shares outstanding - basic		1,468		1,459
Dilutive effect of common stock options		—		—
Weighted average shares outstanding - diluted		1,468		1,459
Earnings per share - basic	$	8.48	$	5.86
Earnings per share - diluted	$	8.48	$	5.86

Applicable guidance requires that outstanding, unvested share-based payment awards that contain voting rights and rights to nonforfeitable dividends participate in undistributed earnings with common shareholders. Accordingly, the weighted average number of shares of the Company’s common stock used in the calculation of basic and diluted net income per common share includes unvested shares of the Company’s outstanding restricted common stock.

The vesting of 5,793 and 6,573 restricted stock units outstanding as of December 31, 2021 and 2020, respectively, are dependent upon meeting certain performance criteria. As of December 31, 2021 and December 31, 2020, it was indeterminable whether these non-vested restricted stock units will vest and as such those shares are excluded from common shares issued and outstanding at each date and are not included in the computation of earnings per share for any period presented.

Outstanding options and warrants to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. Stock options for 406 and 592 shares were not included in computing diluted earnings per share at December 31, 2021 and 2020, respectively, because their effects were anti-dilutive.