Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income by the weighted average number of common shares outstanding for the period adjusted to include the effect of outstanding stock options, if dilutive, using the treasury stock method. Shares issued during any period are weighted for the portion of the period they were outstanding.

The following schedule presents earnings per share data for the three months ended March 31, 2026 and 2025 (in thousands, except per share data):


	Three months ended March 31,
	2026		2025
Net income applicable to common stock	$	6,229	$	5,378
Weighted average number of common shares outstanding		6,788		6,905
Basic earnings per share	$	0.92	$	0.78
Net income applicable to common stock	$	6,229	$	5,378
Weighted average number of common shares outstanding		6,788		6,905
Dilutive effect on common shares outstanding		20		59
Weighted average number of diluted common shares outstanding		6,808		6,964
Diluted earnings per share	$	0.91	$	0.77

Restricted stock units and options to purchase 174,751 shares of common stock at a weighted average exercise price of $30.75 were included in the computation of diluted earnings per share for the three months ended March 31, 2026. There were no antidilutive shares to be excluded from the computation of diluted earnings per share at March 31, 2026.

Restricted stock units and options to purchase 260,698 shares of common stock at a weighted average exercise price of $26.99 were included in the computation of diluted earnings per share for the three months ended March 31, 2025. There were no antidilutive shares to be excluded from the computation of diluted earnings per share at March 31, 2025.