EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2023

5. EARNINGS PER SHARE

Basic earnings per share (“EPS”) are computed based on the weighted average number of common shares outstanding during the period. Diluted EPS includes additional common shares that would have been outstanding if potential common shares with a dilutive effect, such as stock awards from the Company’s restricted stock plan, had been issued. Anti-dilutive securities represent potentially dilutive securities which are excluded from the computation of diluted EPS as their impact would be anti-dilutive. Diluted EPS is computed using the treasury stock method.

The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except share data)	2023		2022		2023		2022

Numerator:
Net income	$	636	$	723	$	1,831	$	779

Denominator:

Basic weighted-average common shares outstanding		8,329,676		8,235,610		8,318,257		8,361,959
Dilutive effect of service-based restricted stock awards granted to Board of Directors under the Plan		3,015		8,858		1,935		7,208
Dilutive effect of service-based restricted stock awards granted to employees under the Plan		72,050		28,089		33,255		14,391
Diluted weighted-average common shares outstanding		8,404,741		8,272,557		8,353,447		8,383,558