EARNINGS PER SHARE
The factors used in the earnings per share computation follow:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (Dollars in thousands) | 2025 | | 2024 | | 2023 |
| Basic | | | | | |
| Net income to common stockholders | $ | 22,153 | | | $ | 12,884 | | | $ | 37,875 | |
| Weighted average common shares outstanding | 23,618,924 | | | 23,286,675 | | | 23,208,086 | |
| Basic earnings per common share | $ | 0.94 | | | $ | 0.55 | | | $ | 1.63 | |
| | | | | |
| Diluted | | | | | |
| Net income to common stockholders | $ | 22,153 | | | $ | 12,884 | | | $ | 37,875 | |
| Weighted average common shares outstanding | 23,618,924 | | | 23,286,675 | | | 23,208,086 | |
| Dilutive effects of: | | | | | |
| Assumed exercises of stock options | 62,264 | | | 94,036 | | | 78,679 | |
| Restricted stock awards | 15,266 | | | 62,074 | | | 98,408 | |
| Restricted stock units | 111,736 | | | 135,982 | | | 91,454 | |
| Performance stock units - market based | 35,535 | | | 198,617 | | | 84,869 | |
| | | | | |
| Employee stock purchase plan | 3,723 | | | 2,008 | | | 881 | |
| Average shares and dilutive potential common shares | 23,847,448 | | | 23,779,392 | | | 23,562,377 | |
| Diluted earnings per common share | $ | 0.93 | | | $ | 0.54 | | | $ | 1.61 | |
Shares that were not considered in computing diluted earnings per common share because they were antidilutive or have not met the thresholds to be considered in the dilutive calculation are as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Stock options | 150,466 | | | 48,650 | | | 100,818 | |
| Restricted stock awards | — | | | — | | | — | |
| Restricted stock units | 3,750 | | | 7,500 | | | 7,500 | |
| Performance stock units - market based | 48,587 | | | 15,715 | | | 12,020 | |
| | | | | |
| Employee stock purchase plan | — | | | — | | | — | |
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.