NSTS Bancorp, Inc. Earnings Per Share Disclosure

Note 15: Earnings Per Share

 

Basic EPS represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that should then share in the earnings of the entity. Diluted EPS is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding for the period, plus the effect of potential dilutive common share equivalents.

There were no securities or other contracts that had a dilutive effect during the twelve months ended December 31, 2025 and 2024, and therefore the weighted-average common shares outstanding used to calculate both basic and diluted EPS are the same. Shares held by the Employee Stock Ownership Plan ("ESOP") that have not been allocated to employees in accordance with the terms of the ESOP, referred to as "unallocated ESOP shares", are not deemed outstanding for purposes of the EPS calculation. 

 

		Year Ended December 31,
		2025				2024
Net loss applicable to common shares		$	(386	)		$	(789	)
Average number of common shares outstanding			5,244,728				5,289,932
Less: Average unallocated ESOP shares			357,220				378,471
Average number of common shares outstanding used to calculate basic earnings per common share			4,887,508				4,911,461
Loss per common share basic and diluted		$	(0.08	)		$	(0.16	)

 

All unallocated ESOP shares have been excluded from the calculation of basic and diluted EPS. Due to the net loss position, all outstanding share option awards are anti-dilutive and excluded from the computation of diluted earnings per share.