FIRST UNITED CORP/MD/ Earnings Per Share Disclosure
2. Earnings Per Common Share
Basic earnings per common share is derived by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period and does not include the effect of any potentially dilutive common stock equivalents. Diluted earnings per share is derived by dividing net income available to common shareholders by the weighted-average number of shares outstanding, adjusted for the dilutive effect of outstanding common stock equivalents. There were no anti-dilutive shares at December 31, 2023 or 2022.
The following table sets forth the calculation of basic and diluted earnings per common share for the years ended December 31, 2023 and 2022:
2023 | 2022 | |||||||||||||||
Average | Per Share | Average | Per Share | |||||||||||||
(in thousands, except for per share amount) |
| Income |
| Shares |
| Amount |
| Income |
| Shares |
| Amount | ||||
Basic Earnings Per Share: | ||||||||||||||||
Net income | $ | 15,060 | 6,686 | $ | 2.25 | $ | 25,048 | 6,650 | $ | 3.77 | ||||||
Diluted Earnings Per Share: | ||||||||||||||||
Restricted stock units | 15 | 11 | ||||||||||||||
Net income | $ | 15,060 | 6,701 | $ | 2.25 | $ | 25,048 | 6,661 | $ | 3.76 | ||||||
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.