MainStreet Bancshares, Inc. Earnings Per Share Disclosure
Note 12. Earnings Per Common Share
Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock which then shared in the earnings of the Bank. There were no such potentially dilutive securities outstanding in 2024, 2023, or 2022.
The weighted average number of shares used in the calculation of basic and diluted earnings per share includes unvested restricted shares of the Company’s common stock outstanding. Applicable guidance requires that outstanding unvested share-based payment awards that contain voting rights and rights to non-forfeitable dividends participate in undistributed earnings with common stockholders.
| For the Year Ended December 31, | ||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2022 | |||||||||
| Net income (loss) | $ | (9,980 | ) | $ | 26,585 | $ | 26,674 | |||||
| Preferred stock dividends | (2,156 | ) | (2,156 | ) | $ | (2,156 | ) | |||||
| Net income (loss) available to common shareholders | $ | (12,136 | ) | $ | 24,429 | $ | 24,518 | |||||
| Weighted average number of shares issued, basic and diluted | 7,606,391 | 7,522,913 | 7,529,382 | |||||||||
| Earnings (loss) per common share: | ||||||||||||
| Basic and diluted earnings (loss) per common share | $ | (1.60 | ) | $ | 3.25 | $ | 3.26 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 14, 2025 | Showing above |
| 2023 | Mar 20, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 23, 2022 | |
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.