CAMDEN NATIONAL CORPCAC

CAMDEN NATIONAL CORP Earnings Per Share Disclosure

10-KFiled Mar 13, 20192 min read
EPS

The following is an analysis of the calculation of basic and diluted EPS, reflecting the application of the two-class method, for the periods indicated:
 
For The Year Ended
December 31,
 
2018
 
2017
 
2016
Net income
$
53,071

 
$
28,476

 
$
40,067

Dividends and undistributed earnings allocated to participating securities(1)
(148
)
 
(118
)
 
(189
)
Net income available to common shareholders
$
52,923

 
$
28,358

 
$
39,878

Weighted-average common shares outstanding for basic EPS
15,571,387

 
15,509,665

 
15,422,160

Dilutive effect of stock-based awards(2)
54,916

 
78,682

 
82,079

Weighted-average common and potential common shares for diluted EPS
15,626,303

 
15,588,347

 
15,504,239

Earnings per common share:
  

 
  

 
  

Basic EPS
$
3.40

 
$
1.83

 
$
2.59

Diluted EPS
$
3.39

 
$
1.82

 
$
2.57

(1)
Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends.
(2)
Represents the effect of the assumed exercise of stock options, vesting of restricted shares and restricted stock units, and issuance of LTIP awards that have met the performance criteria, utilizing the treasury stock method.

For the year ended December 31, 2018, 2017 and 2016 there were no anti-dilutive stock based awards that have been excluded from the computation of potential common shares for purposes of calculating diluted EPS, as the average market price of the Company's common stock is greater than the exercise prices.

Nonvested stock-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of the Company’s nonvested stock-based awards qualify as participating securities.

Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested stock-based awards. Diluted EPS is computed in a similar manner, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method.

Historical Timeline

Fiscal YearFiled
2018Mar 13, 2019Showing above
2017Mar 9, 2018
2016Mar 7, 2017
2015Mar 11, 2016

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.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsNew StandardsPay vs Performance