ECB Bancorp, Inc. /MD/ Earnings Per Share Disclosure
NOTE 18 – EARNINGS PER SHARE ("EPS")
Basic earnings per share is calculated by dividing the income available to common shares by the weighted-average number of common shares outstanding during the period. Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potential dilutive common shares (such as those resulting from the exercise of stock options) were issued during the period, computed using the treasury stock method. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations.
| Year ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| (dollars in thousands, except per share data) | ||||||||
| Net income allocated to common stock | $ | 7,772 | $ | 3,991 | ||||
| Weighted-average common shares outstanding used to calculate basic earnings per common share | 8,100,328 | 8,257,014 | ||||||
| Add: Dilutive effect of stock options | 114,634 | — | ||||||
| Add: Dilutive effect of restricted stock awards | 97,004 | 88,723 | ||||||
| Weighted-average common shares outstanding used to calculate diluted earnings per common share | 8,311,966 | 8,345,737 | ||||||
| Earnings per common share | ||||||||
| Basic | $ | 0.96 | $ | 0.48 | ||||
| Diluted | $ | 0.94 | $ | 0.48 | ||||
For the year ended December 31, 2025, there were no anti-dilutive shares. For the year ended December 31, 2024, the shares that were anti-dilutive, and therefore excluded from the calculation of diluted earnings per share, included options to purchase 758,137 shares of common stock.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 25, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 30, 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.