SOUTH PLAINS FINANCIAL, INC. Earnings Per Share Disclosure
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19.
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EARNINGS PER SHARE
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December 31,
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2024
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2023 |
2022
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Net income
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$
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49,717
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$
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62,745
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$
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58,240
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Weighted average common shares outstanding - basic
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16,410,336
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16,843,753
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17,373,138
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| Effect of dilutive securities: |
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| Stock based compensation awards |
621,002 | 489,459 | 646,690 | |||||||||
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Weighted average common shares outstanding - diluted
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17,031,338
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17,333,212
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18,019,828
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Basic earnings per share
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$
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3.03
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$
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3.73
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$
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3.35
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Diluted earnings per share
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$
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2.92
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$
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3.62
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$
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3.23
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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.