ORRSTOWN FINANCIAL SERVICES INC Earnings Per Share Disclosure
| 2024 | 2023 | 2022 | |||||||||||||||
| Net income | $ | 22,050 | $ | 35,663 | $ | 22,037 | |||||||||||
| Weighted average shares outstanding - basic | 14,761 | 10,340 | 10,553 | ||||||||||||||
| Dilutive effect of share-based compensation | 153 | 95 | 153 | ||||||||||||||
| Weighted average shares outstanding - diluted | 14,914 | 10,435 | 10,706 | ||||||||||||||
| Per share information: | |||||||||||||||||
| Basic earnings per share | $ | 1.49 | $ | 3.45 | $ | 2.09 | |||||||||||
| Diluted earnings per share | 1.48 | 3.42 | 2.06 | ||||||||||||||
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.