Commercial Bancgroup, Inc. Earnings Per Share Disclosure
Note 22. Earnings Per Share
The factors used in the earnings per share computation follow:
| 2025 | 2024 | |||||||
| Basic | ||||||||
| Net income | $ | 37,196,198 | $ | 31,409,926 | ||||
| Weighted average common shares outstanding | 12,605,127 | 12,187,560 | ||||||
| Basic earnings per share | $ | 2.95 | $ | 2.58 | ||||
| Diluted | ||||||||
| Net income | $ | 37,196,198 | $ | 31,409,926 | ||||
| Weighted average common shares outstanding for basic EPS | 12,605,127 | 12,187,560 | ||||||
| Add: Dilutive effects of assumed exercise of stock grants | 6,043 | 179,688 | ||||||
| Average shares and dilutive common shares | 12,611,170 | 12,367,248 | ||||||
| Diluted earnings per common share | $ | 2.95 | $ | 2.54 | ||||
Dilutive common shares on December 31, 2024, represent shares that have been awarded but have not been issued to the recipient. (See Note 13 regarding discussion of the award.)
Dilutive common shares on December 31, 2025, represent restricted stock units that have been awarded but have not vested and issued to the recipient. (See Note 14 regarding discussion of stock compensation.)
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.