Basic EPS is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. The Company grants restricted stock awards, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Company's common stock. These restricted stock awards meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS.

Diluted EPS incorporates the potential impact of contingently issuable shares. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under two-class method was more dilutive.



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands, except share and per share data)	2025		2024		2025		2024
Basic
Net income	$	6,333	$	5,436	$	11,893	$	10,662
Distributed and undistributed earnings allocated to participating securities	(53)		(103)		(127)		(201)
Net income allocated to common shares	$	6,280	$	5,333	$	11,766	$	10,461
Weighted average common shares outstanding	14,859,718		14,868,344		14,858,483		14,930,090
Basic earnings per common share	$	0.42	$	0.36	$	0.79	$	0.70
Diluted
Net income allocated to common shares	$	6,280	$	5,333	$	11,766	$	10,461
Weighted average common shares outstanding for basic earnings per common share	14,859,718		14,868,344		14,858,483		14,930,090
Add: Dilutive effects of assumed exercises of stock options (1)	—		—		—		—
Average shares and dilutive potential common shares	14,859,718		14,868,344		14,858,483		14,930,090
Diluted earnings per common share	$	0.42	$	0.36	$	0.79	$	0.70