EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2023

Basic earnings per common share is computed by dividing net income, excluding net earnings allocated to participating securities, by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. For the three and six months ended June 30, 2023 and 2022, there were no outstanding stock options to include in the diluted earnings per common share calculations.

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per common share pursuant to the two-class method. The Corporation has determined that its outstanding unvested time-based stock awards are participating securities.

The computation of basic and diluted earnings per common share is shown below:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Basic earnings per common share computation:
Net income per condensed consolidated statements of income	$	12,752	$	14,363	$	28,166	$	28,533
Net earnings allocated to participating securities	(74)		(68)		(154)		(132)
Net earnings allocated to common stock	$	12,678	$	14,295	$	28,012	$	28,401
Distributed earnings allocated to common stock	$	3,650	$	2,935	$	7,322	$	5,879
Undistributed earnings allocated to common stock	9,028		11,360		20,690		22,522
Net earnings allocated to common stock	$	12,678	$	14,295	$	28,012	$	28,401
Weighted average common shares outstanding, including shares considered participating securities	21,033		16,860		21,087		16,871
Less: Average participating securities	(116)		(78)		(108)		(75)
Weighted average shares	20,917		16,782		20,979		16,796
Basic earnings per common share	$	0.61	$	0.85	$	1.34	$	1.69
Diluted earnings per common share computation:
Net earnings allocated to common stock	$	12,678	$	14,295	$	28,012	$	28,401
Weighted average common shares outstanding for basic earnings per common share	20,917		16,782		20,979		16,796
Add: Dilutive effect of stock compensation	40		33		40		34
Weighted average shares and dilutive potential common shares	20,957		16,815		21,019		16,830
Diluted earnings per common share	$	0.61	$	0.85	$	1.33	$	1.69