Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings per Share The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shares are allocated between common shares and participating securities. The Company’s restricted stock awards are considered participating securities as the unvested awards have non-forfeitable rights to dividends, paid or unpaid, on unvested awards. The factors used in the earnings per share computation are as follows:



($ in thousands, except share and per share data)	Three Months Ended September 30,
	2021		2020
Basic
Net income	$	8,250	$	3,595
Undistributed earnings allocated to participating securities	(109)		(44)
Net income allocated to common shares	$	8,141	$	3,551
Weighted average common shares outstanding	15,133,407		15,148,833
Basic earnings per common share	$	0.54	$	0.23
Diluted
Net income allocated to common shares	$	8,141	$	3,551
Weighted average common shares outstanding for basic earnings per common share	15,133,407		15,148,833
Add: Dilutive effects of assumed exercises of stock options	67,206		33,900
Average shares and dilutive potential common shares	15,200,613		15,182,733
Diluted earnings per common share	$	0.54	$	0.23

No stock options for shares of common stock were antidilutive for the three months ended September 30, 2021. Stock options for 262 thousand shares of common stock were antidilutive for the three months ended September 30, 2020.



($ in thousands, except share and per share data)	Nine Months Ended September 30,
	2021		2020
Basic
Net income	$	19,706	$	9,310
Undistributed earnings allocated to participating securities	(216)		(154)
Net income allocated to common shares	$	19,490	$	9,156
Weighted average common shares outstanding	15,071,327		15,235,617
Basic earnings per common share	$	1.29	$	0.60
Diluted
Net income allocated to common shares	$	19,490	$	9,156
Weighted average common shares outstanding for basic earnings per common share	15,071,327		15,235,617
Add: Dilutive effects of assumed exercises of stock options	62,246		48,573
Average shares and dilutive potential common shares	15,133,573		15,284,190
Diluted earnings per common share	$	1.29	$	0.60

No stock options for shares of common stock were antidilutive for the nine months ended September 30, 2021. Stock options for 212 thousand shares of common stock were antidilutive for the nine months ended September 30, 2020.