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


	For the three months ended September 30,				For the nine months ended September 30,
	2019		2018		2019		2018
	(Dollars in thousands, except per share)

Net (loss) income	$	(279)	$	751	$	(137)	$	540
Less net (loss) income attributable to participating securities		(4)		(3)		(2)		(2)
(Loss) income available to common stockholders	$	(275)	$	748	$	(135)	$	538

Weighted average common shares outstanding for basic earnings (loss) per common share		26,907,546		26,752,542		26,782,325		26,752,347
Add: dilutive effects of assumed exercises of stock options		—		—		—		42,912
Add: dilutive effects of unvested restricted stock awards		—		4,267		—		8,474
Weighted average common shares outstanding for diluted earnings (loss) per common share		26,907,546		26,756,809		26,782,325		26,803,733

(Loss) Earnings per common share - basic	$	(0.01)	$	0.03	$	(0.01)	$	0.02
(Loss) Earnings per common share - diluted	$	(0.01)	$	0.03	$	(0.01)	$	0.02

Unvested restricted stock awards of 341,750 shares of common stock and stock options for 455,000 shares of common stock for the three and nine months ended September 30, 2019 and unvested restricted stock awards of 8,474 shares of common stock and stock options for 537,500 shares of common stock for the three and nine months ended September 30, 2018 were not considered in computing diluted earnings per common share because they were anti-dilutive.