Earnings Per Share of Common Stock

9 Months Ended

Sep. 30, 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:

	For the three months ended September 30,				For the nine months ended September 30,
	2016		2015		2016		2015
	(Dollars in thousands, except per share)
Basic
Net income	$	327	$	979	$	1,279	$	3,430
Weighted average common shares outstanding	29,076,708		29,076,708		29,076,708		29,076,708
Earnings per common share - basic	$	0.01	$	0.03	$	0.04	$	0.12
Diluted
Net income	$	327	$	979	$	1,279	$	3,430
Weighted average common shares outstanding	29,076,708		29,076,708		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		29,076,708		29,076,708
Earnings per common share - diluted	$	0.01	$	0.03	$	0.04	$	0.12

Stock options for 540,625 shares of common stock for the three and nine months ended September 30, 2016 and for 90,625 shares of common stock for the three and nine months ended September 30, 2015 were not considered in computing diluted earnings per common share, because they were anti-dilutive.