10.       OUTSTANDING SHARES AND EARNINGS PER SHARE

On January 22, 2026, the Board of Directors of the Company declared a 5% stock dividend payable March 25, 2026 to shareholders of record as of February 27, 2026.  All income per share amounts have been adjusted to give retroactive effect to stock dividends.

Earnings Per Share (EPS)

Basic EPS includes no dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the respective period.  Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding plus dilutive shares for the quarter.  Diluted shares include all common stock equivalents (“in-the-money” stock options, unvested restricted stock, stock units, warrants and rights, convertible bonds and preferred stock), which reflects the potential dilution of securities that could share in the earnings of the Company.

The following table presents a reconciliation of basic and diluted EPS for the three and six months ended June 30, 2026 and 2025:

Restricted stock not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 231 shares and 0 shares for the three months ended June 30, 2026 and 2025, respectively.  There were no stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect for the three months ended June 30, 2026 and 2025. Restricted stock not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 13,516 shares and 609 shares for the six months ended June 30, 2026 and 2025, respectively.  Stock options not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 0 shares and 14,744 shares for the six months ended June 30, 2026 and 2025, respectively.