Earnings Per Share of Common Stock

3 Months Ended

Mar. 31, 2016

Earnings Per Share of Common Stock

Earnings Per Share of Common Stock

NOTE (2) – Earnings Per Share of Common Stock

Basic earnings per share of common stock is computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding for the period.  Diluted earnings per share of common stock is computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding for the period, increased for the dilutive effect of common stock equivalents.

The following table shows how the Company computed basic and diluted earnings per share of common stock for the periods indicated:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands, except share and per share)
Basic
Net income	$	633	$	1,298
Weighted average common shares outstanding	29,076,708		29,076,708
Earnings per common share - basic	$	0.02	$	0.04
Diluted
Net income	$	633	$	1,298
Weighted average common shares outstanding	29,076,708		29,076,708
Add: dilutive effects of assumed exercises of stock options	-		-
Weighted average common shares - fully dilutive	29,076,708		29,076,708
Earnings per common share - diluted	$	0.02	$	0.04

Stock options for 540,625 and 90,625 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2016 and 2015, respectively, because they were anti-dilutive.