NOTE 13 – Earnings Per Common Share

 

The following schedule reconciles the numerators and denominators of the basic and diluted earnings per share computations for the years ended December 31, 2025, 2024, and 2023. Dilutive common shares arise from the potentially dilutive effect of the Company’s outstanding stock options and unvested restricted stock. The assumed conversion of stock options and warrants can create a difference between basic and dilutive net income per common share.

 

At December 31, 2025, 2024, and 2023, options totaling 6,913, 153,755, and 269,072, respectively, were anti-dilutive in the calculation of earnings per share as their exercise price exceeded the fair market value. These options were therefore excluded from the diluted earnings per share calculation.

 

                 
     
   For the years ended December 31, 
(dollars in thousands, except share data)  2025   2024   2023 
Numerator:            
Net income  $30,366    15,530    13,426 
Net income available to common shareholders  $30,366    15,530    13,426 
Denominator:               
Weighted-average common shares outstanding - basic   8,091,322    8,080,623    8,046,633 
Common stock equivalents   69,142    36,434    31,821 
Weighted-average common shares outstanding - diluted   8,160,464    8,117,057    8,078,454 
Earnings per common share:               
Basic  $3.75    1.92    1.67 
Diluted  $3.72    1.91    1.66 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Mar 3, 2025
2023Mar 5, 2024
2022Feb 13, 2023

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.