Earnings Per Share of Common Stock

9 Months Ended

Sep. 30, 2022

Earnings Per Share of Common Stock [Abstract]

Earnings Per Share of Common Stock

NOTE (3) – 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: 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands, except share and per share data)
Net income (loss) attributable to Broadway Financial Corporation	$	1,318	$	182	$	4,130	$	(2,604	)
Less net income (loss) attributable to participating securities		7		–		25		–
Income (loss) available to common stockholders	$	1,311	$	182	$	4,105	$	(2,604	)
Weighted average common shares outstanding for basic earnings (loss) per common share		72,555,282		71,222,869		72,386,900		56,403,545
Add: dilutive effects of unvested restricted stock awards		408,552		228,082		442,150		–
Weighted average common shares outstanding for diluted earnings (loss) per common share		72,963,834		71,450,951		72,829,050		56,403,545
Earnings (loss) per common share - basic	$	0.02	$	–	$	0.06	$	(0.05	)
Earnings (loss) per common share - diluted	$	0.02	$	–	$	0.06	$	(0.05	)

Stock options for 450,000 shares of common stock for the nine months ended September 30, 2021 were not considered in computing diluted earnings per common share for because they were anti-dilutive due to the net loss. There were no unvested restricted stock awards outstanding during the three months ended September 30, 2021.