16.
Earnings Per Common Share

Basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per common share is computed by using the net earnings allocated to common stock plus dividends on dilutive convertible preferred stock, divided by the sum of 1) the weighted-average number of shares determined for the basic earnings per common share computation, 2) the dilutive effect of stock compensation using the treasury stock method, and 3) the dilutive effect of convertible preferred stock using the if-converted method.

The following table presents a reconciliation of net income available to common shareholders and the number of shares used in the calculation of basic and diluted earnings per common share shown on the consolidated statements of income:

 

 

For the Years Ended December 31,

 

(Dollars in thousands, except share and per share data)

 

2025

 

 

2024

 

 

2023

 

Net income

 

$

66,291

 

 

$

47,671

 

 

$

33,401

 

Less: dividends declared, Preferred Series A stock

 

 

4,750

 

 

 

4,749

 

 

 

4,736

 

Net income available to common shareholders

 

$

61,541

 

 

$

42,922

 

 

$

28,665

 

Weighted-average shares outstanding for basic earnings per common share

 

 

13,841,230

 

 

 

13,656,859

 

 

 

13,583,553

 

Dilutive effect of stock compensation and other dilutive securities

 

 

551,533

 

 

 

392,542

 

 

 

209,894

 

Dilutive effect of Preferred Series A stock

 

 

3,084,444

 

 

 

3,084,444

 

 

 

3,084,444

 

Weighted-average shares outstanding for diluted earnings per common share

 

 

17,477,207

 

 

 

17,133,845

 

 

 

16,877,891

 

Basic earnings per share

 

$

4.45

 

 

$

3.14

 

 

$

2.11

 

Diluted earnings per share

 

$

3.79

 

 

$

2.78

 

 

$

1.98

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 4, 2026Showing above
2024Mar 5, 2025
2023Mar 7, 2024
2022Mar 15, 2023
2021Mar 17, 2022

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.