First Western Financial Inc Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||
| (dollars in thousands, except share and per share amounts) | 2025 | 2024 | |||||||||
| Earnings per common share - Basic | |||||||||||
| Numerator: | |||||||||||
| Net income available for common shareholders | $ | 13,188 | $ | 8,473 | |||||||
| Denominator: | |||||||||||
| Basic weighted average shares | 9,712,488 | 9,649,433 | |||||||||
| Earnings per common share - basic | $ | 1.36 | $ | 0.88 | |||||||
| Earnings per common share - Diluted | |||||||||||
| Numerator: | |||||||||||
| Net income available for common shareholders | $ | 13,188 | $ | 8,473 | |||||||
| Denominator: | |||||||||||
| Basic weighted average shares | 9,712,488 | 9,649,433 | |||||||||
| Diluted effect of common stock equivalents: | |||||||||||
| Time Vesting Units | 45,370 | 29,624 | |||||||||
| Financial Performance Units | 72,275 | 76,747 | |||||||||
| Total diluted effect of common stock equivalents | 117,645 | 106,371 | |||||||||
| Diluted weighted average shares | 9,830,133 | 9,755,804 | |||||||||
| Earnings per common share - diluted | $ | 1.34 | $ | 0.87 | |||||||
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Stock options | 55,670 | 94,474 | |||||||||
| Time Vesting Units | 37,870 | 96,056 | |||||||||
| Financial Performance Units | — | 2,273 | |||||||||
| Total potentially dilutive securities | 93,540 | 192,803 | |||||||||
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.