Central Plains Bancshares, Inc. Earnings Per Share Disclosure
Note 16 - EARNINGS PER SHARE
Basic earnings per share (EPS) represents income available to common stockholders divided by weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that should then share in the earnings of the entity. Diluted EPS is computed by dividing net income attributed to common stockholders by the weighted-average number of common shares outstanding for the period, plus the effect of potential dilutive common share equivalents.
There were no securities or other contracts that had a dilutive effect during the twelve months ended March 31, 2025 and 2024, and therefore the weighted-average common shares outstanding used to calculate both basic and diluted EPS are the same. Shares held by the Employee Stock Ownership Plan ("ESOP") that have not been allocated to employees in accordance with the terms of the ESOP, referred to as "unallocated ESOP shares", are not deemed outstanding for EPS calculations. Earnings per share for the year ended March 31, 2024 was calculated using 1,717,941 weighted average shares outstanding which represents zero shares outstanding prior to the conversion on October 19, 2023.
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Year Ended |
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Year Ended |
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March 31, 2025 |
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March 31, 2024 |
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(Dollars in thousands) |
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Net income applicable to common shares |
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$ |
3,654 |
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$ |
3,759 |
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Average number of common shares outstanding |
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4,123,079 |
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1,862,253 |
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Less: Average unallocated ESOP shares |
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307,851 |
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144,312 |
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Average number of common shares outstanding used to calculate basic earnings per common share |
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3,815,228 |
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1,717,941 |
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Diluted potential common shares |
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1,190 |
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— |
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Average number of common shares outstanding used to calculate diluted earnings per common share |
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3,816,418 |
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1,717,941 |
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Earnings per common share - basic |
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$ |
0.96 |
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$ |
2.19 |
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Earnings per common share - diluted |
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$ |
0.96 |
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$ |
2.19 |
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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.