NOTE 8. EARNINGS PER SHARE The following table presents the calculation of earnings per share: | | | | | | | | | Three Months Ended | | | March 31, | (in thousands, except per share and share data) | | 2026 | | 2025 | Net income | | $ | 13,537 | | $ | 10,211 | | | | | | | | Average number of basic common shares outstanding(1) | | | 16,728,128 | | | 15,303,645 | Plus: dilutive effect of stock options and awards outstanding | | | 76,010 | | | 88,894 | Average number of diluted common shares outstanding(2) | | | 16,804,138 | | | 15,392,539 | | | | | | | | Earnings per share: | | | | | | | Basic | | $ | 0.81 | | $ | 0.67 | Diluted | | | 0.81 | | | 0.66 |
| (1) | In the third quarter of 2025 the Company issued 1,350,464 shares of common stock in consideration for the acquisition of Guaranty. Refer to Note 2 of the consolidated financial statements for further details. |
| (2) | Average diluted shares outstanding are computed using the treasury stock method. |
|