Note 13 – Earnings per common share (EPS)

Basic EPS excludes dilution and is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, or resulted in the issuance of common stock that then shared in the earnings of the entity.

The basic and diluted earnings per share calculations are as follows (dollars in thousands except per share data):

Year Ended December 31,

2025

2024

Net income

$               9,022

$               7,944

Weighted average number of shares outstanding - basic and diluted

4,543,338

4,543,338

Earnings per common shares - basic and diluted

$                 1.99

$                 1.75

There are currently no outstanding stock awards as of December 31, 2025 and 2024. There were no potentially dilutive shares outstanding in 2025 and 2024. Consequently, the weighted average shares and weighted average diluted shares were identical.

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2024Mar 26, 2025
2023Mar 27, 2024
2022Mar 31, 2023
2021Mar 29, 2022

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.