Note 2 - Common Stock Outstanding and Earnings Per Share

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 2. COMMON STOCK OUTSTANDING AND EARNINGS PER SHARE

Basic earnings per share excludes dilution and is computed by dividing income by the weighted-average number of common shares outstanding for the period, excluding unvested restricted stock awards which do not have voting rights or share in dividends. Diluted earnings per share reflects the potential dilution that would 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 that then shared in the earnings of the Holding Company. The computation of diluted earnings per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on earnings per share.

The following is a computation of basic and diluted earnings per share for the three and six months ended June 30, 2021 and 2020.

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(Amounts in thousands, except per share information)	2021		2020		2021		2020
Earnings Per Share:
Numerators:
Net income	$	4,139	$	3,847	$	9,059	$	4,763
Denominators:
Weighted average number of common shares outstanding - basic (1)		16,736		16,660		16,721		17,178
Effect of potentially dilutive common shares (2)		87		29		82		39
Weighted average number of common shares outstanding - diluted		16,823		16,689		16,803		17,217
Earnings per common share:
Basic	$	0.25	$	0.23	$	0.54	$	0.28
Diluted	$	0.25	$	0.23	$	0.54	$	0.28
Anti-dilutive options not included in diluted earnings per share calculation		—		76		—		60

⁽¹⁾ Excludes unvested restricted shares because they do not have dividend or voting rights

⁽²⁾ Represents the effects of the assumed exercise of stock options and vesting of non-participating restricted shares.

In late 2020, we announced a new share repurchase program to repurchase up to 1.0 million shares of common stock over a period ending December 31, 2021. As of June 30, 2021, no shares have been repurchased under this program. Given the recent announcement of the merger with Columbia, management will not be purchasing shares under the program.

In late 2019, we announced a program to repurchase 1.0 million shares of common stock, which was later increased to 1.5 million shares of common stock. Between October of 2019 and April of 2020, all 1.5 million shares were repurchased at a total cost of $13.6 million including commissions, or an average of $9.11 per share.