SB FINANCIAL GROUP, INC. Earnings Per Share Disclosure
Note 2: Earnings Per Share
Earnings Per Share (“EPS”) is computed using the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common shares. Diluted EPS is computed using the weighted-average number of shares determined for the basic EPS plus the dilutive effect of stock compensation using the treasury stock method. EPS for the years ended December 31, 2025, and 2024 is computed as follows:
| Twelve Months Ended Dec. 31, | ||||||||
| ($ and outstanding shares in thousands - except per share data) | 2025 | 2024 | ||||||
| Distributed earnings allocated to common shares | $ | 3,848 | $ | 3,770 | ||||
| Undistributed earnings allocated to common shares | 10,100 | 7,666 | ||||||
| Net earnings allocated to common shares | 13,948 | 11,436 | ||||||
| Net earnings allocated to participating securities | 26 | 34 | ||||||
| Net Income allocated to common shares and participating securities | $ | 13,974 | $ | 11,470 | ||||
| Weighted average shares outstanding for basic earnings per share | 6,369 | 6,660 | ||||||
| Dilutive effect of stock compensation | 19 | 20 | ||||||
| Weighted average shares outstanding for diluted earnings per share | 6,388 | 6,680 | ||||||
| Basic earnings per common share | $ | 2.19 | $ | 1.72 | ||||
| Diluted earnings per common share | $ | 2.19 | $ | 1.72 | ||||
There were no anti-dilutive shares in 2025 or 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 8, 2021 | |
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.