Virginia National Bankshares Corp Earnings Per Share Disclosure
Note 19 Earnings per Share
The following shows the weighted average number of shares used in computing earnings per share and the effect on weighted average number of shares of diluted potential common stock. Potential dilutive common stock has no effect on income available to common shareholders.
| December 31, 2016 | December 31, 2015 | ||||||||||||||||
| Weighted | Per | Weighted | Per | ||||||||||||||
| Average | Share | Average | Share | ||||||||||||||
| Net Income | Shares | Amount | Net Income | Shares | Amount | ||||||||||||
| Basic earnings per share | $ | 5,748 | 2,369,331 | $ | 2.43 | $ | 3,121 | 2,531,964 | $ | 1.23 | |||||||
| Effect of dilutive stock options | 14,700 | (0.02 | ) | 12,427 | - | ||||||||||||
| Diluted earnings per share | $ | 5,748 | 2,384,031 | $ | 2.41 | $ | 3,121 | 2,544,391 | $ | 1.23 | |||||||
In 2016, stock options representing 34,960 average shares were not included in the calculation of earnings per share, as their effect would have been antidilutive. Stock options representing 82,110 average shares were similarly not included in 2015.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2016 | Mar 27, 2017 | Showing above |
| 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.