Earnings Per Share

12 Months Ended

Dec. 31, 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 years ended December 31, 2022, 2021 and 2020:



	Year Ended December 31,
($ in thousands, except share and per share data)	2022		2021		2020
Basic
Net income	$	33,310	$	28,840	$	13,127
Distributed and undistributed earnings allocated to participating securities	(704)		(330)		(195)
Net income allocated to common shares	$	32,606	$	28,510	$	12,932
Weighted average common shares outstanding	15,171,240		15,087,686		15,196,351
Basic earnings per common share	$	2.15	$	1.89	$	0.85
Diluted
Net income allocated to common shares	$	32,606	$	28,510	$	12,932
Weighted average common shares outstanding for basic earnings per common share	15,171,240		15,087,686		15,196,351
Add: Dilutive effects of assumed exercises of stock options	60,178		67,661		27,537
Average shares and dilutive potential common shares	15,231,418		15,155,347		15,223,888
Diluted earnings per common share	$	2.14	$	1.88	$	0.85

No share of common stock was antidilutive for the years ended December 31, 2022 and 2021. For the year ended December 31, 2020, antidilutive stock options for 212,000 shares of common stock were excluded from the diluted EPS computation.