RED RIVER BANCSHARES INCRRBI

RED RIVER BANCSHARES INC Earnings Per Share Disclosure

10-KFiled Mar 14, 20251 min read
Earnings Per Common Share
Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits. Diluted EPS includes accrued but unissued shares relating to the Director Compensation Program, stock options, and restricted stock determined using the treasury stock method. The dilutive EPS calculation assumes all outstanding stock options to purchase common stock have been exercised at the beginning of the year, and the pro forma proceeds from the exercised options and restricted stock are used to purchase common stock at the average fair market valuation price.
The computations of basic and diluted earnings per common share for the Company were as follows:
Years Ended December 31,
(in thousands, except share amounts)202420232022
Numerator:
Net income - basic$34,235 $34,879 $36,916 
Net income - diluted$34,235 $34,879 $36,916 
Denominator:
Weighted average shares outstanding - basic6,898,286 7,164,314 7,180,975 
Plus: Effect of Director Compensation Program1,139 741 1,655 
Plus: Effect of restricted stock18,635 16,673 14,823 
Weighted average shares outstanding - diluted6,918,060 7,181,728 7,197,453 
Earnings per common share:
Basic$4.96 $4.87 $5.14 
Diluted$4.95 $4.86 $5.13 

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.

Other Available Disclosures

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