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 and six months ended June 30, 2026 and 2025 (in thousands, except per share data):


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Net income applicable to common stock	$	7,081	$	688	$	13,310	$	6,066
Weighted average number of common shares outstanding		6,812		6,867		6,800		6,886
Basic earnings per share	$	1.04	$	0.10	$	1.96	$	0.88
Net income applicable to common stock	$	7,081	$	688	$	13,310	$	6,066
Weighted average number of common shares outstanding		6,812		6,867		6,800		6,886
Dilutive effect on common shares outstanding		11		29		16		43
Weighted average number of diluted common shares outstanding		6,823		6,896		6,816		6,929
Diluted earnings per share	$	1.04	$	0.10	$	1.95	$	0.88

Restricted stock units and options to purchase 150,354 shares of common stock at a weighted average exercise price of $32.17 were included in the computation of diluted earnings per share for the three and six months ended June 30, 2026. There were no antidilutive shares to be excluded from the computation of diluted earnings per share at June 30, 2026.

Restricted stock units and options to purchase 210,698 shares of common stock at a weighted average exercise price of $26.02 were included in the computation of diluted earnings per share for the three and six months ended June 30, 2025. There were no antidilutive shares to be excluded from the computation of diluted earnings per share at June 30, 2025.