Avidia Bancorp, Inc. Earnings Per Share Disclosure
NOTE 16. EARNINGS PER SHARE
Basic earnings per share ("EPS") represents net income available to common shareholders divided by the weighted-average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the year, plus the effect of potential dilutive common share equivalents computed using the treasury stock method. There were no securities that had a dilutive effect during the year ended December 31, 2025, and therefore the weighted-average common shares outstanding used to calculate both basic and diluted EPS are the same. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Earnings per share data is not applicable for the year ended December 31, 2024 as the Company had no shares outstanding.
(Dollars in thousands, except per share data) |
December 31, 2025 |
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December 31, 2024 |
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Net loss |
$ |
(3,289 |
) |
|
$ |
— |
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Average number of common shares outstanding |
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20,076,250 |
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|
— |
|
Less: average unallocated ESOP shares |
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1,545,741 |
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|
|
— |
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Average number of basic and diluted shares outstanding |
|
18,530,509 |
|
|
|
— |
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Loss per common share: |
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Basic |
$ |
(0.18 |
) |
|
$ |
— |
|
Diluted |
$ |
(0.18 |
) |
|
$ |
— |
|
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.