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EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

13. EARNINGS PER SHARE

The Company calculates earnings per share under the two-class method. Under the two-class method, earnings available to common shareholders for the period are allocated between Class A Common Stock and Class B Common Stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. The difference in earnings per share between the two classes of common stock results from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on Class B Common Stock.

A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and diluted earnings per share computations is presented below:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except per share data)	2022		2021		2022		2021

Net income	$	19,483	$	20,009	$	71,310	$	69,984
Dividends declared on Common Stock:
Class A Shares		(5,995)		(5,557)		(18,123)		(16,980)
Class B Shares		(669)		(606)		(2,010)		(1,830)
Undistributed net income for basic earnings per share		12,819		13,846		51,177		51,174
Weighted average potential dividends on Class A shares upon exercise of dilutive options		(21)		(17)		(70)		(40)
Undistributed net income for diluted earnings per share	$	12,798	$	13,829	$	51,107	$	51,134

Weighted average shares outstanding:
Class A Shares		17,759		18,342		17,904		18,625
Class B Shares		2,160		2,166		2,162		2,182
Effect of dilutive securities on Class A Shares outstanding		62		83		68		72
Weighted average shares outstanding including dilutive securities		19,981		20,591		20,134		20,879

Basic earnings per share:
Class A Common Stock:
Per share dividends distributed	$	0.34	$	0.31	$	1.02	$	0.92
Undistributed earnings per share*		0.65		0.68		2.58		2.48
Total basic earnings per share - Class A Common Stock	$	0.99	$	0.99	$	3.60	$	3.40

Class B Common Stock:
Per share dividends distributed	$	0.31	$	0.28	$	0.93	$	0.84
Undistributed earnings per share*		0.59		0.62		2.34		2.26
Total basic earnings per share - Class B Common Stock	$	0.90	$	0.90	$	3.27	$	3.10

Diluted earnings per share:
Class A Common Stock:
Per share dividends distributed	$	0.34	$	0.31	$	1.02	$	0.92
Undistributed earnings per share*		0.65		0.68		2.56		2.47
Total diluted earnings per share - Class A Common Stock	$	0.99	$	0.99	$	3.58	$	3.39

Class B Common Stock:
Per share dividends distributed	$	0.31	$	0.28	$	0.93	$	0.84
Undistributed earnings per share*		0.59		0.62		2.33		2.25
Total diluted earnings per share - Class B Common Stock	$	0.90	$	0.90	$	3.26	$	3.09

To arrive at undistributed earnings per share, undistributed net income is first prorated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class.

Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2022	2021	2022	2021

Antidilutive stock options	180,000	141,000	180,000	144,000
Average antidilutive stock options	177,000	141,000	174,000	144,000