v3.26.1
Note 3 - Earnings Per Common Share
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Earnings Per Share [Text Block]

NOTE 3. EARNINGS PER COMMON SHARE

 

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by using net income available to common shareholders plus dividends declared 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-based compensation using the treasury stock method, and 3) the dilutive effect of convertible preferred stock using the if-converted method.

 

The following is a summary of the information used in the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2026 and 2025 (in thousands, except share and per share data).

 

  

Three months ended June 30,

  

Six months ended June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Net income

 $9,472  $4,494  $21,496  $10,787 

Less: preferred stock dividends declared

  528   —   1,056   — 

Net income available to common shareholders

 $8,944  $4,494  $20,440  $10,787 
                 

Weighted average basic shares outstanding

  13,788,871   9,844,351   13,775,804   9,838,521 

Dilutive effect of stock compensation

  203,838   114,043   209,169   100,101 

Dilutive effect of Series A Preferred Stock

  1,547,603   —   1,547,603   — 

Weighted average diluted shares outstanding

  15,540,312   9,958,394   15,532,576   9,938,622 
                 

Basic earnings per common share

 $0.64  $0.46  $1.48  $1.10 

Diluted earnings per common share

 $0.61  $0.46  $1.38  $1.09 

 

The weighted average shares that have an antidilutive effect in the calculation of diluted earnings per common share and have been excluded from the computations above are shown below.

 

  

Three months ended June 30,

  

Six months ended June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Stock options

  —   4,206   —   4,167 

RSUs

  —   265   315   446 

 

INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)