Earnings per Share
The following table is a reconciliation of the components used to derive basic and diluted EPS for the years ended December 31, 2025 and 2024 ($ in thousands, except per share amounts):
Years Ended
December 31,
 20252024
Numerator:
Net income$16,091 $12,742 
Amounts allocated to participating common shareholders(1)
(705)(390)
Net income allocated to common shareholders$15,386 $12,352 
Denominator:
Weighted average shares outstanding, basic12,828,01612,612,455
Weighted average effect of dilutive securities:
Stock options572,431491,036
Warrants164,889125,378
Weighted average shares outstanding, diluted13,565,33613,228,869
Earnings per share, basic$1.20 $0.98 
Earnings per share, diluted$1.13 $0.93 
Anti-dilutive stock options excluded from the calculation of diluted earnings per share— 77,723
(1)Represents earnings attributable to holders of unvested restricted stock issued to the Company’s directors and employees. On December 31, 2025, executive management elected to waive the dividend rights on their unvested restricted stock awards. As a result, beginning on December 31, 2025, the unvested shares related to executive management will no longer be treated as participating securities and are excluded from the two-class method calculation of EPS. This change was effective beginning with the quarter ending December 31, 2025 and had a de minimus impact on basic and diluted earnings per share. The change does not affect previously reported periods.

Historical Timeline

Fiscal YearFiled
2025Mar 23, 2026Showing above
2024Mar 26, 2025
2023Mar 25, 2024
2022Mar 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.