Basic earnings per share is calculated using the two-class method, which is net income available to common shareholders divided by the weighted average number of common shares outstanding during the period, excluding participating securities. All outstanding unvested share-based payment awards, including those related to directors' and employee stock awards, contain rights to non-forfeitable dividends and are considered participating securities for this calculation. Restricted stock awards are grants of participating securities and are considered outstanding at grant date. There were no dilutive securities issuable or outstanding for the three and nine month periods ended September 30, 2026 and 2025, respectively.

The calculation of basic earnings per share for the three and nine month periods ended September 30, 2026 and 2025 is shown below (in thousands, except share and per share data):


	For the Three Months Ended				For the Nine Months Ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Net income	$	12,707	$	7,792	$	30,716	$	7,363
(Less) allocation of earnings & dividends to participating securities	(173)		(115)		(412)		(102)
Net income available to common shareholders	$	12,534	$	7,677	$	30,304	$	7,261

Weighted average common shares outstanding	4,839,358		4,810,682		4,833,260		4,802,228
(Less) participating securities	(66,734)		(70,590)		(64,702)		(66,363)
Weighted average number of shares outstanding used in the calculation of basic earnings per share	4,772,624		4,740,092		4,768,558		4,735,865
Basic earnings per common share	$	2.63	$	1.62	$	6.36	$	1.53