John Marshall Bancorp, Inc. Earnings Per Share Disclosure
Note 13— Earnings per Common Share
Earnings per common share is calculated in accordance with ASC 260 - Earnings Per Share, which provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.
Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of voting common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.
The following table summarizes the computation of earnings per share for the years December 31, 2025 and December 31, 2024.
Table 13.1: Computation of Basic and Diluted Earnings per Common Share
Year ended | |||||||
December 31, | |||||||
| 2025 | | 2024 |
| |||
Earnings per common share - basic: | |
| | ||||
Income available to common shareholders (in thousands): | |
| | ||||
Net income | $ | 21,233 | $ | 17,121 | |||
Less: Income attributable to unvested restricted stock awards |
| (77) |
| (56) | |||
Net income available to common shareholders | $ | 21,156 | $ | 17,065 | |||
Weighted average shares outstanding: |
| |
| | |||
Common shares outstanding, including unvested restricted stock |
| 14,241,246 |
| 14,218,507 | |||
Less: Unvested restricted stock |
| (51,724) |
| (46,341) | |||
Weighted-average common shares outstanding - basic |
| 14,189,522 |
| 14,172,166 | |||
Earnings per common share - basic | $ | 1.49 | $ | 1.20 | |||
Earnings per common share - diluted: |
| |
| | |||
Income available to common shareholders (in thousands): |
| |
| | |||
Net income | $ | 21,233 | $ | 17,121 | |||
Less: Income attributable to unvested restricted stock awards |
| (77) |
| (56) | |||
Net income available to common shareholders | $ | 21,156 | $ | 17,065 | |||
Weighted average shares outstanding: |
| |
| | |||
Common shares outstanding, including unvested restricted stock |
| 14,241,246 |
| 14,218,507 | |||
Less: Unvested restricted stock |
| (51,724) |
| (46,341) | |||
Plus: Effect of dilutive options |
| 5,081 |
| 33,943 | |||
Weighted-average common shares outstanding - diluted |
| 14,194,603 |
| 14,206,109 | |||
Earnings per common share - diluted | $ | 1.49 | $ | 1.20 | |||
Outstanding options to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. All stock options outstanding as of December 31, 2025 and December 31, 2024 were included as none had anti-dilutive effects.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 20, 2024 | |
| 2022 | Mar 23, 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.