Note 9 — Earnings Per Share

Earnings per share (“EPS”) is calculated on both a basic and a diluted basis. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that then shared in earnings, excluding common shares in treasury. For diluted EPS, the weighted-average number of common shares includes the impact of unvested performance stock units (“PSUs”) under the treasury method.

Unvested restricted stock containing rights to non-forfeitable dividends are considered participating securities prior to vesting and have been included in the earnings allocation in computing basic and diluted EPS under the two-class method.

The following table is a reconciliation of the components used to derive basic and diluted EPS for the periods indicated:


	Three Months Ended
	March 31,
	2025		2024
	(dollars in thousands, except per share and unit amounts)
Basic EPS
Net income	$	17,672	$	15,164
Less: income allocated to unvested restricted stock		148		92
Income allocated to common shares	$	17,524	$	15,072
Weighted-average shares for basic EPS		29,937,660		30,119,646
Basic EPS (1)	$	0.59	$	0.50

Effect of dilutive PSUs		120,588		—

Diluted EPS
Income allocated to common shares	$	17,524	$	15,072
Weighted-average shares for diluted EPS		30,058,248		30,119,646
Diluted EPS (1)	$	0.58	$	0.50

(1)

Per share amounts may not be able to be recalculated using net income and weighted-average shares presented above due to rounding.

On a weighted-average basis, options to purchase 3,000 and 61,000 shares of common stock were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2025 and 2024, respectively, because their effect would have been anti-dilutive. There were no anti-dilutive unvested PSUs outstanding for the three months ended March 31, 2025 and 91,732 anti-dilutive unvested PSUs outstanding for the three months ended March 31, 2024.

During the three months ended March 31, 2025, 52,526 PSUs were awarded to executive officers from the 2021 Equity Compensation Plan, with a fair value of $1.2 million on the grant date of March 26, 2025. These units have a three-year cliff vesting period and include dividend equivalent rights. No PSUs were awarded to executive officers during the three months ended March 31, 2024. Total PSUs outstanding as of March 31, 2025 were 194,820 with an aggregate grant fair value of $3.6 million. Total PSUs outstanding as of March 31, 2024 were 91,732 with an aggregate grant fair value of $2.1 million.