SMARTFINANCIAL INC. Earnings Per Share Disclosure
Note 3. Earnings Per Share
Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding and dilutive common share equivalents using the treasury stock method. Dilutive common share equivalents include common shares issuable upon exercise of outstanding stock options and restricted stock. The effect from the stock options and restricted stock on
incremental shares from the assumed conversions for net income per share-basic and net income per share-diluted are presented below. There were no antidilutive shares for the years ended December 31, 2025 and 2024, and 2023.
The following is a summary of the basic and diluted earnings per share computation (dollars in thousands, except share and per share data):
2025 | | 2024 | 2023 | ||||||
Basic earnings per share computation: | |
| | | |||||
Net income available to common shareholders | $ | 50,347 | $ | 36,141 | $ | 28,593 | |||
Average common shares outstanding – basic |
| 16,779,019 |
| 16,768,956 |
| 16,805,068 | |||
Basic earnings per share | $ | 3.00 | $ | 2.16 | $ | 1.70 | |||
Diluted earnings per share computation: |
| |
| |
| | |||
Net income available to common shareholders | $ | 50,347 | $ | 36,141 | $ | 28,593 | |||
Average common shares outstanding – basic |
| 16,779,019 |
| 16,768,956 |
| 16,805,068 | |||
Incremental shares from assumed conversions: |
| |
| |
| | |||
Stock options and restricted stock |
| 117,500 |
| 106,500 |
| 106,117 | |||
Average common shares outstanding - diluted |
| 16,896,519 |
| 16,875,456 |
| 16,911,185 | |||
Diluted earnings per common share | $ | 2.98 | $ | 2.14 | $ | 1.69 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 12, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 31, 2017 | |
| 2015 | Mar 30, 2016 | |
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.