ALERUS FINANCIAL CORP Earnings Per Share Disclosure
NOTE 23 Earnings Per Share
The calculation of basic and diluted earnings per share using the two-class method for the years ending December 31, 2025, 2024, and 2023 is presented below:
| Year ended | ||||||||||||
| December 31, | ||||||||||||
| (dollars and shares in thousands, except per share data) | 2025 | 2024 | 2023 | |||||||||
| Net income | $ | 17,439 | $ | 17,780 | $ | 11,696 | ||||||
| Dividends and undistributed earnings allocated to participating securities | (29 | ) | 37 | (5 | ) | |||||||
| Net income available to common stockholders | $ | 17,468 | $ | 17,743 | $ | 11,701 | ||||||
| Weighted-average common shares outstanding for basic earnings per share | 25,380 | 21,047 | 19,922 | |||||||||
| Dilutive effect of stock-based awards | 317 | 274 | 221 | |||||||||
| Weighted-average common shares outstanding for diluted earnings per share | 25,697 | 21,321 | 20,143 | |||||||||
| Earnings per common share: | ||||||||||||
| Basic earnings per common share | $ | 0.69 | $ | 0.84 | $ | 0.59 | ||||||
| Diluted earnings per common share | $ | 0.68 | $ | 0.83 | $ | 0.58 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 13, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 26, 2020 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.