Bancorp, Inc. Earnings Per Share Disclosure
The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share. Basic earnings per share is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share is calculated under the treasury stock method and takes into account the potential dilution that could occur if securities, including stock options and RSUs or other contracts to issue common stock were exercised and converted into common stock.
The calculation of weighted-average common shares outstanding during each respective period includes activity related to share repurchases made under the Company’s share repurchase programs, as discussed further in Note 11, “Shareholders’ Equity”.
The following tables show the Company’s earnings per share for the periods presented:
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| Year ended December 31, | |||||||
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| 2025 |
| 2024 |
| 2023 | |||
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| (Dollars in thousands except per share data) | |||||||
Net income |
| $ | 228,213 |
| $ | 217,540 |
| $ | 192,296 |
Weighted average shares - basic |
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| 45,770,549 |
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| 50,063,620 |
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| 54,506,065 |
Effect of dilutive securities: |
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Common stock options and RSUs |
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| 651,123 |
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| 649,520 |
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| 547,432 |
Weighted average shares - diluted |
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| 46,421,672 |
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| 50,713,140 |
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| 55,053,497 |
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Basic and diluted earnings per share: |
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Net income per share - basic |
| $ | 4.99 |
| $ | 4.35 |
| $ | 3.52 |
Effect of dilutive securities: |
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Common stock options and RSUs |
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| (0.07) |
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| (0.06) |
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| (0.03) |
Net income per share - diluted |
| $ | 4.92 |
| $ | 4.29 |
| $ | 3.49 |
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Included in the computation of diluted shares: |
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Stock options with exercise price below average market price |
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Share count |
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| 368,293 |
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| 565,104 |
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| 465,104 |
Minimum exercise price |
| $ | 8.57 |
| $ | 6.87 |
| $ | 6.87 |
Maximum exercise price |
| $ | 43.89 |
| $ | 30.32 |
| $ | 18.81 |
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Excluded from the computation of diluted shares: Antidilutive securities |
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Outstanding stock-based compensation awards |
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| 32,624 |
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| 103,189 |
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| 157,573 |
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.