4. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilutive effect on EPS that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock, increasing the total number of shares outstanding. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. The following tables set forth the computation of basic and diluted earnings per share: | | | | | | | (Amounts in thousands, except earnings per share data) | | Three Months Ended June 30, | | | 2026 | | 2025 | Net income | | $ | 2,522 | | $ | 1,911 | Weighted-average common shares outstanding | | | 5,033 | | | 5,017 | Basic earnings per share | | $ | 0.50 | | $ | 0.38 | | | | | | | | Weighted-average common shares outstanding | | | 5,033 | | | 5,017 | Common stock equivalents due to effect of stock options and restricted stock | | | 16 | | | 12 | Total weighted-average common shares and equivalents | | | 5,049 | | | 5,029 | Diluted earnings per share | | $ | 0.50 | | $ | 0.38 | Anti-dilutive stock options and restricted stock outstanding | | | — | | | — |
| | | | | | | (Amounts in thousands, except earnings per share data) | | Six months ended June 30, | | | 2026 | | 2025 | Net income | | $ | 5,319 | | $ | 3,919 | Weighted-average common shares outstanding | | | 5,029 | | | 5,013 | Basic earnings per share | | $ | 1.06 | | $ | 0.78 | | | | | | | | Weighted-average common shares outstanding | | | 5,029 | | | 5,013 | Common stock equivalents due to effect of stock options and restricted stock | | | 17 | | | 12 | Total weighted-average common shares and equivalents | | | 5,046 | | | 5,025 | Diluted earnings per share | | $ | 1.05 | | $ | 0.78 | Anti-dilutive stock options and restricted stock outstanding | | | — | | | 3 |
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