Investar Holding Corp Earnings Per Share Disclosure
NOTE 22. EARNINGS PER SHARE
The following is a summary of the information used in the computation of basic and diluted earnings per common share for the years ended December 31, 2024, 2023 and 2022 (in thousands, except share data).
| December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Earnings per common share - basic | ||||||||||||
| Net income | $ | 20,252 | $ | 16,678 | $ | 35,709 | ||||||
| Less: income allocated to participating securities | — | (1 | ) | (33 | ) | |||||||
| Net income allocated to common shareholders | 20,252 | 16,677 | 35,676 | |||||||||
| Weighted average basic shares outstanding | 9,813,694 | 9,839,258 | 10,085,758 | |||||||||
| Basic earnings per common share | $ | 2.06 | $ | 1.69 | $ | 3.54 | ||||||
| Earnings per common share - diluted | ||||||||||||
| Net income allocated to common shareholders | $ | 20,252 | $ | 16,677 | $ | 35,676 | ||||||
| Weighted average basic shares outstanding | 9,813,694 | 9,839,258 | 10,085,758 | |||||||||
| Dilutive effect of securities | 122,386 | 2,583 | 94,951 | |||||||||
| Total weighted average diluted shares outstanding | 9,936,080 | 9,841,841 | 10,180,709 | |||||||||
| Diluted earnings per common share | $ | 2.04 | $ | 1.69 | $ | 3.50 | ||||||
The weighted average number of shares that have an antidilutive effect in the calculation of diluted earnings per common share and have been excluded from the computations above are shown below.
| December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Stock options | 2,238 | — | 15,361 | |||||||||
| Restricted stock awards | — | — | 135 | |||||||||
| RSUs | 4,741 | 71,711 | 15,176 | |||||||||
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.