Note 17. Earnings per Share

 

The following table presents the calculation of basic and diluted earnings per common share for the periods indicated:

 

  

Year Ended December 31,

 
  

2025

  

2024

  

2023

 

(Amounts in thousands, except share and per share data)

            

Net income

 $48,794  $51,604  $48,020 
             

Weighted average common shares outstanding, basic

  18,312,570   18,349,498   17,996,373 

Dilutive effect of potential common shares

            

Stock options

  21,422   33,692   15,856 

Restricted stock and units

  76,459   47,016   14,922 

Total dilutive effect of potential common shares

  97,881   80,708   30,778 

Weighted average common shares outstanding, diluted

  18,410,451   18,430,206   18,027,151 
             

Basic earnings per common share

 $2.66  $2.81  $2.67 

Diluted earnings per common share

  2.65   2.80   2.72 
             

Potential antidilutive common shares

            

Stock options

  -   -   129,324 

Restricted stock and units

  -   76   32,706 

Total potential antidilutive shares

  -   76   162,030 

 

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 7, 2025
2023Mar 8, 2024
2022Feb 22, 2023
2021Mar 3, 2022
2020Mar 12, 2021
2019Mar 13, 2020
2018Mar 1, 2019
2017Mar 5, 2018
2016Mar 3, 2017

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.