NOTE 10. — EARNINGS PER COMMON SHARE

Basic and diluted earnings per common share gives effect, utilizing the two-class method, to the potential dilution from the issuance of shares of our common stock in settlement of RSUs which provide for non-forfeitable dividend equivalents equal to the dividends declared per common share. Basic and diluted earnings per common share is computed by dividing net earnings less dividend equivalents attributable to RSUs by the weighted average number of common shares outstanding during the year.

The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per common share using the two-class method (in thousands except per share data):

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Net earnings

 

$

79,192

 

 

$

71,064

 

 

$

60,151

 

Less dividend equivalents attributable to RSUs outstanding

 

 

(3,149

)

 

 

(2,625

)

 

 

(2,208

)

Net earnings attributable to common stockholders used in basic
   and diluted earnings per share calculation

 

$

76,043

 

 

$

68,439

 

 

$

57,943

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

56,316

 

 

 

54,305

 

 

 

50,020

 

Incremental shares from stock-based compensation

 

 

64

 

 

 

75

 

 

 

72

 

Incremental shares from the equity offering forward agreements

 

 

68

 

 

 

146

 

 

 

 

Incremental shares from ATM Program forward agreements

 

 

11

 

 

 

26

 

 

 

124

 

Diluted

 

 

56,459

 

 

 

54,552

 

 

 

50,216

 

Basic earnings per common share

 

$

1.35

 

 

$

1.26

 

 

$

1.16

 

Diluted earnings per common share

 

 

1.35

 

 

 

1.25

 

 

 

1.15

 

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021

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.