Note 14 – Earnings Per Share

We determine basic earnings per share (“EPS”) by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is determined by dividing net income available to common shareholders by the weighted-average number of shares outstanding, increased by both the number of shares that would be issued assuming the exercise of instruments under our incentive stock plan.

For the years ended
December 31,
(Dollars in thousands except shares and per share data)202420232022
Numerator for earnings per share:
Net income from continuing operations$20,245 $22,224 $11,734 
Net (income) loss attributable to noncontrolling interest(154)226 660 
Net income available to common shareholders from continuing operations20,091 22,450 12,394 
Net income from discontinued operations available to common shareholders - basic and diluted— 8,782 2,653 
Net income available to common shareholders$20,091 $31,232 $15,047 
Denominator:
Weighted-average shares outstanding - basic12,890,161 12,694,206 12,279,462 
Effect of dilutive stock options and restricted stock units246,597 303,126 591,272 
Weighted-average shares outstanding - diluted13,136,758 12,997,332 12,870,734 
Earnings per share from continuing operations - basic$1.56 $1.77 $1.01 
Earnings per share from discontinued operations - basic$— $0.69 $0.22 
Earnings per common share - basic$1.56 $2.46 $1.23 
Earnings per share from continuing operations - diluted$1.53 $1.72 $0.96 
Earnings per share from discontinued operations - diluted$— $0.68 $0.21 
Earnings per common share - diluted$1.53 $2.40 $1.17 
Instruments not included in the computation of diluted EPS because the effect would be antidilutive136,701 364,105 113,427 

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.