Oak Valley Bancorp Earnings Per Share Disclosure

NOTE 11 — EARNINGS PER SHARE

 

EPS are based upon the weighted average number of common shares outstanding during each year. The following table shows: (1) weighted average basic shares, (2) effect of dilutive securities related to stock options and non-vested restricted stock, and (3) weighted average diluted shares. Basic EPS are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding dilutive stock options and unvested restricted stock awards. Diluted EPS are calculated using the weighted average diluted shares. The total dilutive shares included in annual diluted EPS is a year-to-date weighted average of the total dilutive shares included in each quarterly diluted EPS computation under the treasury stock method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of restricted stock awards receive non-forfeitable dividends at the same rate as common stockholders and they both share equally in undistributed earnings. Therefore, under the two-class method the difference in EPS is not significant for these participating securities.

 

The Company’s calculation of EPS including basic EPS, which does not consider the effect of common stock equivalents and diluted EPS, which considers all dilutive common stock equivalents is as follows:

 

		YEAR ENDED DECEMBER 31, 2025
(dollars in thousands)		Income (Numerator)				Weighted Avg Shares (Denominator)				Per-Share Amount
Basic EPS:
Net income		$	23,913				8,243,285			$	2.90
Effect of dilutive securities:
Non-vested restricted stock			—				48,616
Total dilutive shares							48,616
Diluted EPS:
Net income per diluted share		$	23,913				8,291,901			$	2.88

 

 

		YEAR ENDED DECEMBER 31, 2024
(dollars in thousands)		Income (Numerator)				Weighted Avg Shares (Denominator)				Per-Share Amount
Basic EPS:
Net income		$	24,948				8,218,846			$	3.04
Effect of dilutive securities:
Non-vested restricted stock			—				40,011
Total dilutive shares							40,011
Diluted EPS:
Net income per diluted share		$	24,948				8,258,857			$	3.02