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				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
	(dollars in thousands, except per share and unit amounts)
Basic EPS
Net income	$	22,061	$	14,892	$	54,850	$	44,506
Less: income allocated to unvested restricted stock		176		131		450		352
Income allocated to common shares	$	21,885	$	14,761	$	54,400	$	44,154
Weighted-average shares for basic EPS		29,830,475		29,968,004		29,905,265		30,048,748
Basic EPS (1)	$	0.73	$	0.49	$	1.82	$	1.47

Effect of dilutive PSUs		50,390		65,675		50,101		68,521

Diluted EPS
Income allocated to common shares	$	21,885	$	14,761	$	54,400	$	44,154
Weighted-average shares for diluted EPS		29,880,865		30,033,679		29,955,366		30,117,269
Diluted EPS (1)	$	0.73	$	0.49	$	1.82	$	1.47

(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 2,000 and 28,000 shares of common stock were excluded from the calculation of diluted earnings per share for the nine months ended September 30, 2025 and 2024, respectively, because their effect would have been anti-dilutive. There were no anti-dilutive options excluded from the diluted earnings per share calculation for the three months ended September 30, 2025. For the three months ended September 30, 2024, options to purchase 28,000 shares of common stock were excluded from the calculation of diluted earnings per share, on a weighted average basis, because they were anti-dilutive. There were no anti-dilutive unvested PSUs outstanding for the three and nine months ended September 30, 2025 and 91,732 anti-dilutive unvested PSUs outstanding for the three and nine months ended September 30, 2024.

During the nine months ended September 30, 2025, 53,509 PSUs were awarded to executive officers from the 2021 Equity Compensation Plan, with a fair value of $1.2 million on the grant date. 88,598 PSUs were awarded to executive officers during the nine months ended September 30, 2024 with a fair value of $1.3 million on the grant date. These units have a three-year cliff vesting period and include dividend equivalent rights. There were no PSUs awarded, vested, or forfeited during the three months ended September 30, 2025 and 2024. Total PSUs outstanding as of September 30, 2025 were 191,804 with an aggregate grant fair value of $3.5 million. Total PSUs outstanding as of September 30, 2024 were 180,330 with an aggregate grant fair value of $3.4 million.