EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 8 — EARNINGS PER SHARE

The Company uses the two-class method in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share calculation are as follows (in thousands, except per share data).

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Basic
Net income per consolidated statements of income	$	23,189	$	13,336	$	42,210	$	25,453
Less: Earnings allocated to participating securities		(63)		(84)		(85)		(106)
Net income available to common stockholders	$	23,126	$	13,252	$	42,125	$	25,347
Weighted average common shares outstanding including participating securities		10,961,697		8,343,946		10,947,829		8,329,003
Less: Weighted average participating securities		(30,000)		(31,712)		(22,111)		(34,599)
Weighted average common shares outstanding		10,931,697		8,312,234		10,925,718		8,294,404
Basic earnings per common share	$	2.12	$	1.59	$	3.86	$	3.06
Diluted
Net income allocated to common stockholders	$	23,126	$	13,252	$	42,125	$	25,347
Weighted average common shares outstanding for basic earnings per common share		10,931,697		8,312,234		10,925,718		8,294,404
Add: Dilutive effects of assumed exercise of stock options		180,787		162,674		186,364		153,545
Add: Dilutive effects of assumed vesting of performance based restricted stock		52,004		38,495		63,980		31,613
Add: Dilutive effects of assumed vesting of restricted stock units		25,319		30,071		32,930		17,383
Average shares and dilutive potential common shares		11,189,807		8,543,474		11,208,992		8,496,945
Dilutive earnings per common share	$	2.07	$	1.55	$	3.76	$	2.98

All stock options and performance based restricted stock units were considered in computing diluted earnings per common share for the three and six months ended June 30, 2022 and 2021. For the three and six months ended June 30, 2022 and 2021, 234,332 and 105,424 restricted stock units were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive.