Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per ShareBasic EPS is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. The Company grants restricted stock awards, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Company's common stock. These restricted stock awards meet the definition of participating

securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS.

Diluted EPS incorporates the potential impact of contingently issuable shares. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under two-class method was more dilutive.

The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the three and six months ended June 30, 2022 and 2021:



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands, except share and per share data)	2022		2021		2022		2021
Basic
Net income	$	8,480	$	6,379	$	16,632	$	11,456
Undistributed earnings allocated to participating securities	(205)		(60)		(346)		(112)
Net income allocated to common shares	8,275		6,319		16,286		11,344
Weighted average common shares outstanding	15,141,975		15,056,484		15,139,903		15,039,773
Basic earnings per common share	$	0.55	$	0.42	$	1.08	$	0.75
Diluted
Net income allocated to common shares	$	8,275	$	6,319	$	16,286	$	11,344
Weighted average common shares outstanding for basic earnings per common share	15,141,975		15,056,484		15,139,903		15,039,773
Add: Dilutive effects of assumed exercises of stock options	92,602		72,967		98,210		59,630
Average shares and dilutive potential common shares	15,234,577		15,129,451		15,238,113		15,099,403
Diluted earnings per common share	$	0.54	$	0.42	$	1.07	$	0.75

No share of common stock was antidilutive for the three and six months ended June 30, 2022 and 2021.