Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per share:
(Dollars in thousands, except share and per share data)202520242023
Numerator
Net income$255,605 $228,830 $255,863 
Denominator
Basic earnings per common share - weighted average shares95,284,550 94,404,617 93,938,772 
Effect of dilutive securities
Employee stock awards873,414 1,001,102 1,157,295 
Diluted earnings per common share - adjusted weighted average shares96,157,964 95,405,719 95,096,067 
Earnings per share available to common shareholders
Basic$2.68 $2.42 $2.72 
Diluted$2.66 $2.40 $2.69 

Stock options with exercise prices greater than the average market price of the common shares are excluded from the computation of net income per diluted share, as they would be antidilutive.  Using the end of period price of the Company's common shares, there were no antidilutive options at December 31, 2025, 2024, or 2023.
As of December 31, 2025, 2024, and 2023, First Financial was authorized to issue 10,000,000 preferred shares; however, no preferred shares were issued or outstanding.

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.