Earnings per Share

12 Months Ended

Dec. 31, 2021

Note 4:

Earnings per Share

Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the year.

Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income dividend by the weighted average number of commons shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and nonqualified stock options, calculated using the treasury stock method.

The following table shows the computation of basic and diluted earnings per share:

	As of and for the Years ended December 31,
	2021		2020		2019
(Dollars in thousands, except per share amounts)
Numerator
Net income	$	23,159	$	19,266	$	8,225

Denominator
Weighted-average shares outstanding for basic earnings per share		9,056,117		9,378,769		10,145,032
Dilutive effect of stock compensation ⁽¹⁾		35,419		385		2,279
Denominator for diluted earnings per share		9,091,536		9,379,154		10,147,311

Earnings per common share
Basic	$	2.56	$	2.05	$	0.81
Diluted	$	2.55	$	2.05	$	0.81

(1)	Nonqualified stock options outstanding of 264,000, 185,250 and 163,000 as of December 31, 2021, 2020 and 2019, respectively, have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented.