Earnings per Share

3 Months Ended

Mar. 31, 2026

Note 3: Earnings per Share

Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic earnings per share (“EPS”) is computed based upon net income divided by the weighted average number of common shares outstanding during the period.

Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income divided by the weighted average number of common shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and nonqualified stock options, calculated using the treasury stock method.

The following table shows the computation of basic and diluted earnings per share:

	As of and for the three months ended March 31,
	2026		2025
(Dollars in thousands, except share and per share amounts)
Numerator
Net income	$	12,006	$	10,336

Denominator
Weighted-average shares outstanding for basic earnings per share		9,491,075		9,421,534
Dilutive effect of stock compensation⁽¹⁾		105,794		130,739
Denominator for diluted earnings per share		9,596,869		9,552,273

Earnings per common share
Basic	$	1.26	$	1.10
Diluted	$	1.25	$	1.08

(1) The following have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented: Nonqualified stock options outstanding of 0 and 0 for the three month periods ended March 31, 2026 and 2025, respectively; Restricted stock units outstanding of 30,000 and 69,589 for the three month periods ended March 31, 2026 and 2025, respectively.