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 (loss) per share of common stock for the periods indicated:

	For the three months ended June 30,				For the six months ended June 30,
	2018		2017		2018		2017
	(Dollars in thousands, except per share)

Net income (loss)	$	(127)	$	533	$	(211)	$	1,765
Less net income (loss) attributable to participating securities	-		(1)		-		(4)

Income available to common stockholders	$	(127)	$	532	$	(211)	$	1,761



Weighted average common shares outstanding for basic earnings (loss) per common share	26,740,082		26,666,740		26,752,550		26,642,129
Add: dilutive effects of assumed exercises of stock options	-		-		-		-
Add: dilutive effects of unvested restricted stock awards	-		56,552		-		63,655

Weighted average common shares outstanding for diluted earnings (loss) per common share	26,740,082		26,723,292		26,752,550		26,705,784


Earnings (Loss) per common share - basic	$	0.00	$	0.02	$	(0.01)	$	0.07

Earnings (Loss) per common share - diluted	$	0.00	$	0.02	$	(0.01)	$	0.07

An unvested restricted stock award of 10,399 shares and stock options for 537,500 shares of common stock for the three and six months ended June 30, 2018 and stock options for 540,625 shares of common stock for the three and six months ended June 30, 2017 were not considered in computing diluted earnings per common share because they were anti-dilutive.