Earnings Per Share of Common Stock

3 Months Ended

Mar. 31, 2017

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 pursuant to the two-class method by dividing net income available to common stockholders less dividends paid on participating securities (unvested shares of restricted common stock) and any undistributed earnings attributable to participating securities by the weighted average common shares outstanding during the period.  The weighted average common shares outstanding includes the weighted average number of shares of common stock outstanding less the weighted average number of unvested shares of restricted common stock.  ESOP shares are considered outstanding for this calculation unless unearned.  Diluted earnings per share of common stock includes the dilutive effect of unvested stock awards and additional potential common shares issuable under stock options.

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 March 31,
	2017		2016
	(In thousands, except share and per share)
Net income	$	1,232	$	633
Less net income attributable to participating securities	(2)		-
Income available to common stockholders	$	1,230	$	633
Weighted average common shares outstanding for basic earnings per common share	26,616,704		29,076,708
Add: dilutive effects of assumed exercises of stock options	-		-
Add: dilutive effects of unvested restricted stock awards	70,759		-
Weighted average common shares outstanding for diluted earnings per common share	26,687,463		29,076,708
Earnings per common share – basic	$	0.05	$	0.02
Earnings per common share – diluted	$	0.05	$	0.02

Stock options for 540,625 shares of common stock for the three months ended March 31, 2017 and 2016 were not considered in computing diluted earnings per common share because they were anti-dilutive.