ConnectOne Bancorp, Inc. Earnings Per Share Disclosure
Note 3– Earnings per Common Share
FASB ASC 260-10-45, “Earnings Per Share”, addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. Earnings per common share have been computed based on the following:
| Years Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||
| Net income available to common stockholders | $ | 74,407 | $ | 67,757 | $ | 80,967 | ||||||
| Earnings allocated to participating securities | (176 | ) | (187 | ) | (216 | ) | ||||||
| Income attributable to common stock | $ | 74,231 | $ | 67,570 | $ | 80,751 | ||||||
| Weighted average common shares outstanding, including participating securities | 45,304 | 38,376 | 38,913 | |||||||||
| Weighted average participating securities | (107 | ) | (106 | ) | (104 | ) | ||||||
| Weighted average common shares outstanding | 45,197 | 38,270 | 38,809 | |||||||||
| Incremental shares from assumed conversions of options, deferred stock units, performance units and restricted stock | 218 | 211 | 153 | |||||||||
| Weighted average common and equivalent shares outstanding | 45,415 | 38,481 | 38,962 | |||||||||
| Earnings per common share: | ||||||||||||
| Basic | $ | 1.64 | $ | 1.77 | $ | 2.08 | ||||||
| Diluted | 1.63 | 1.76 | 2.07 | |||||||||
There were no antidilutive common share equivalents as of December 31, 2025, 2024 and 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
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.