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				For the nine months
	ended September 30,				ended September 30,
	2018		2017		2018		2017
	(Dollars in thousands, except per share)

Net income	$	751	$	503	$	540	$	2,268
Less net income attributable to participating securities		(3)		(1)		(2)		(5)
Income available to common stockholders	$	748	$	502	$	538	$	2,263

Weighted average common shares outstanding for basic earnings per common share		26,752,542		26,702,564		26,752,347		26,662,344
Add: dilutive effects of assumed exercises of stock options		—		79,898		42,912		3,748
Add: dilutive effects of unvested restricted stock awards		4,267		42,345		8,474		56,552
Weighted average common shares outstanding for diluted earnings per common share		26,756,809		26,824,807		26,803,733		26,722,644
Earnings per common share - basic	$	0.03	$	0.02	$	0.02	$	0.09
Earnings per common share - diluted	$	0.03	$	0.02	$	0.02	$	0.08

An unvested restricted stock award of 8,474 shares and stock options for 537,500 shares of common stock for the three and nine months ended September 30, 2018 and stock options for 90,625 shares of common stock for the three and nine months ended September 30, 2017 were not considered in computing diluted earnings per common share because they were anti-dilutive.