EARNINGS PER COMMON SHARE
Basic earnings per common share is calculated by dividing net income allocated to common shareholders by the weighted average number of shares of common stock outstanding, less average participating shares during the period. Diluted earnings per common share 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 following table reconciles the numerators and denominators of basic and diluted earnings per common share calculations for the periods presented:
Years ended December 31,
(Dollars in Thousands, except share and per share data)202520242023
Numerator for Earnings per Common Share – Basic and Diluted
Net Income$31,362 $24,523 $23,384 
Less: Income allocated to participating shares361 248 197 
Net Income Allocated to Common Shareholders - Basic & Diluted$31,001 $24,275 $23,187 
Denominator:
Weighted Average Shares Outstanding, including Shares Considered Participating Securities22,718,202 23,050,444 23,438,413 
Less: Average Participating Securities261,497 233,295 197,870 
Weighted Average Common Shares Outstanding - Basic & Diluted22,456,705 22,817,149 23,240,543 
Earnings per Common Share – Basic$1.38 $1.06 $1.00 
Earnings per Common Share – Diluted$1.38 $1.06 $1.00 

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 7, 2025
2023Mar 8, 2024
2022Mar 10, 2023

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.