(3) Net Earnings Per Share Net earnings per share is based on the weighted average number of shares outstanding during the period while the effects of potential shares outstanding during the period are included in diluted earnings per share. The average market price during the applicable period is used to compute equivalent shares. Shares held in the deferred compensation plan by the deferred compensation trust are excluded for purposes of calculating the weighted average number of shares outstanding and basic earnings per share in accordance with ASC 260-10-45-40 and ASC 260-10-45-45 through ASC 260-10-45-46. The reconciliation of the amounts used in the computation of both basic earnings per share and diluted earnings per share for the three and nine months ended September 30, 2026 and 2025 is as follows: For the three months ended September 30, 2026 | | Net Earnings (Dollars in thousands) | | | Weighted Average Number of Shares | | | Per Share Amount | | Basic earnings per share | | $ | 5,727 | | | | 5,320,728 | | | $ | 1.08 | | Effect of dilutive securities: | | | | | | | | | | | | | Restricted stock units - unvested | | | | | | | 10,756 | | | | | | Shares held in deferred comp plan by deferred compensation trust | | | | | | | 140,409 | | | | | | Diluted earnings per share | | $ | 5,727 | | | | 5,471,893 | | | $ | 1.05 | |
For the nine months ended September 30, 2026 | | Net Earnings (Dollars in thousands) | | | Weighted Average Number of Shares | | | Per Share Amount | | Basic earnings per share | | $ | 15,359 | | | | 5,316,764 | | | $ | 2.89 | | Effect of dilutive securities: | | | | | | | | | | | | | Restricted stock units - unvested | | | | | | | 9,610 | | | | | | Shares held in deferred comp plan by deferred compensation trust | | | | | | | 145,472 | | | | | | Diluted earnings per share | | $ | 15,359 | | | | 5,471,846 | | | $ | 2.81 | |
For the three months ended September 30, 2025 | | Net Earnings (Dollars in thousands) | | | Weighted Average Number of Shares | | | Per Share Amount | | Basic earnings per share | | $ | 3,692 | | | | 5,309,028 | | | $ | 0.70 | | Effect of dilutive securities: | | | | | | | | | | | | | Restricted stock units - unvested | | | | | | | 12,151 | | | | | | Shares held in deferred comp plan by deferred compensation trust | | | | | | | 150,443 | | | | | | Diluted earnings per share | | $ | 3,692 | | | | 5,471,622 | | | $ | 0.67 | |
For the nine months ended September 30, 2025 | | Net Earnings (Dollars in thousands) | | | Weighted Average Number of Shares | | | Per Share Amount | | Basic earnings per share | | $ | 13,197 | | | | 5,303,953 | | | $ | 2.49 | | Effect of dilutive securities: | | | | | | | | | | | | | Restricted stock units - unvested | | | | | | | 11,098 | | | | | | Shares held in deferred comp plan by deferred compensation trust | | | | | | | 154,502 | | | | | | Diluted earnings per share | | $ | 13,197 | | | | 5,469,553 | | | $ | 2.41 | |
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