Earnings Per Common Share

12 Months Ended

Dec. 31, 2021

Note 12. Earnings Per Common Share

Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock which then shared in the earnings of the Bank. There were no such potentially dilutive securities outstanding in 2021 or 2020.

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

	For the Year Ended December 31,
(Dollars in thousands)	2021			2020
Net income	$	22,171		$	15,717
Preferred stock dividends		(2,156	)		(635	)
Net income available to common shareholders	$	20,015		$	15,082
Weighted average number of shares issued, basic and diluted		7,559,310			8,131,334
Net income per common share:
Basic and diluted income available to common shareholders	$	2.65		$	1.85