| EARNINGS PER COMMON SHARE |
EARNINGS PER COMMON SHARE Earnings per common share is calculated utilizing the two-class method. Basic earnings per common share is calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share is calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. Presented below are the calculations for basic and diluted earnings per common share for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | (dollars in thousands, except per share data) | 2026 | | 2025 | | 2026 | | 2025 | | | | Net income (loss) | $ | 19,888 | | | $ | 12,024 | | | $ | 38,351 | | | $ | (128,950) | | | | | Preferred dividends declared | (2,228) | | | (2,228) | | | (4,456) | | | (4,456) | | | | | | | | | | | | | | | Net income (loss) available to common shareholders | 17,660 | | | 9,796 | | | 33,895 | | | (133,406) | | | | | Common shareholder dividends | (6,634) | | | (6,670) | | | (13,351) | | | (13,336) | | | | | Unvested restricted stock award dividends | (165) | | | (115) | | | (337) | | | (231) | | | | | Undistributed earnings to unvested restricted stock awards | (252) | | | (48) | | | (481) | | | — | | | | | Undistributed earnings (loss) to common shareholders | $ | 10,609 | | | $ | 2,963 | | | $ | 19,726 | | | $ | (146,973) | | | | | Basic | | | | | | | | | | | Distributed earnings to common shareholders | $ | 6,634 | | | $ | 6,670 | | | $ | 13,351 | | | $ | 13,336 | | | | | Undistributed earnings (loss) to common shareholders | 10,609 | | | 2,963 | | | 19,726 | | | (146,973) | | | | | Total common shareholders earnings (loss), basic | $ | 17,243 | | | $ | 9,633 | | | $ | 33,077 | | | $ | (133,637) | | | | | Diluted | | | | | | | | | | | Distributed earnings to common shareholders | $ | 6,634 | | | $ | 6,670 | | | $ | 13,351 | | | $ | 13,336 | | | | | Undistributed earnings (loss) to common shareholders | 10,609 | | | 2,963 | | | 19,726 | | | (146,973) | | | | | Total common shareholders earnings (loss) | 17,243 | | | 9,633 | | | 33,077 | | | (133,637) | | | | | Add back: | | | | | | | | | | | Undistributed earnings reallocated from unvested restricted stock awards | — | | | — | | | — | | | — | | | | | Total common shareholders earnings (loss), diluted | $ | 17,243 | | | $ | 9,633 | | | $ | 33,077 | | | $ | (133,637) | | | | | Weighted average common shares outstanding, basic | 21,074,683 | | | 21,820,190 | | | 21,187,341 | | | 21,808,475 | | | | | Dilutive effect of options | — | | | — | | | — | | | — | | | | | Weighted average common shares outstanding, diluted | 21,074,683 | | | 21,820,190 | | | 21,187,341 | | | 21,808,475 | | | | | Basic earnings (loss) per common share | $ | 0.82 | | | $ | 0.44 | | | $ | 1.56 | | | $ | (6.13) | | | | | Diluted earnings (loss) per common share | $ | 0.82 | | | $ | 0.44 | | | $ | 1.56 | | | $ | (6.13) | | | | | | | | | | | | | | Antidilutive stock options (1) | 151,467 | | | 249,277 | | | 151,467 | | | 249,277 | | | |
(1)The diluted earnings per common share computation excludes antidilutive stock options because the exercise prices of these stock options exceeded the average market prices of the Company's common shares for those respective periods.
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