Earnings per common share
 9 Months Ended
Sep. 30, 2020
Earnings per common share  
Earnings per common share

Note 3 – Earnings per common share

The following table presents the basic and diluted earnings per common share computation (in thousands, except share and  per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 

 

Nine Months Ended September 30, 

 

    

2020

    

2019

    

2020

    

2019

Numerator

 

 

  

 

 

  

 

 

  

 

 

  

Net income - basic and diluted

 

$

2,269

 

$

1,727

 

$

5,502

 

$

3,173

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

 

1,462

 

 

1,451

 

 

1,456

 

 

1,442

Dilutive effect of common stock options

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

$

1,462

 

$

1,451

 

$

1,456

 

$

1,442

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

1.55

 

$

1.19

 

$

3.78

 

$

2.20

Earnings per share - diluted

 

$

1.55

 

$

1.19

 

$

3.78

 

$

2.20

 

Applicable guidance requires that outstanding, unvested share-based payment awards that contain voting rights and rights to nonforfeitable dividends participate in undistributed earnings with common shareholders. Accordingly, the weighted average number of shares of the Company’s common stock used in the calculation of basic and diluted net income per common share includes unvested shares of the Company’s outstanding restricted common stock.

At September 30, 2020 the vesting of 6,573 of the unvested restricted units included in Note 10 “Stock incentive plan” was dependent upon meeting certain performance criteria. As of September 30, 2020, it was indeterminable whether these unvested restricted units would vest and as such the underlying shares were excluded from common shares issued and outstanding at such date and were not included in the computation of earnings per share for such period.

As a result of the Company's largest shareholder's ownership exceeding 50% during the second quarter of 2019, all non-vested restricted stock awards and units outstanding at that time vested during that period.

Outstanding options and warrants to purchase common stock were considered in the computation of diluted earnings per share for the periods presented.  Stock options for 629 and 593 shares were not included in computing diluted earnings per share for the three and nine months ended September 30, 2020, respectively, and stock options for 550 and 563 shares were not included in computing diluted earnings per share for the three and nine months ended September 30, 2019, respectively, because their effects were anti-dilutive.  Additionally, the impact of the warrant to acquire shares of the Company’s common stock in connection with the Company’s participation in the Troubled Asset Relief Program is not included for the period ended September 30, 2019, as the warrant expired on May 1, 2019.