Basic earnings per share excludes dilution and is computed by dividing net income applicable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The Company uses the treasury stock method as described by ASC 260 - Earnings Per Share for each dilutive instrument when computing diluted earnings per share.

The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential common stock. Dilutive potential common stock has no effect on income available to common shareholders.


	Three Months Ended March 31,
	2026		2025
Net income (loss) applicable to common shares (in thousands)	$	27,124	$	26,976

Weighted average number of shares	15,037,330		14,976,483
Options effect of dilutive shares	94,151		49,893
Weighted average dilutive shares	15,131,481		15,026,376

Basic earnings (loss) per common share	$	1.80	$	1.80
Diluted earnings (loss) per common share	1.79		1.80

Stock awards equivalent to 9,816 and 41,553 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2026, and March 31, 2025, respectively, because they are antidilutive.