(2)	EARNINGS PER SHARE

Basic earnings per share (EPS) is computed by dividing net income by the weighted average number of common stock shares outstanding. Diluted EPS is computed by dividing net income by the weighted average number of common stock shares outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period. For the three and nine month periods ended September 30, 2018 and September 30, 2017, the Company has excluded all unearned shares held by the ESOP.


	For the three month periods Ended September 30,
	2018		2017
Basic EPS:
Net income	$	1,240,000	$	1,403,000
Average common shares outstanding		6,211,636		6,236,075

Earnings per share	$	0.20	$	0.22

Diluted EPS
Net income	$	1,240,000	$	1,403,000
Average common shares outstanding		6,211,636		6,236,075

Dilutive effect of stock options		—		—

Average diluted shares outstanding		6,211,636		6,236,075

Earnings per share, diluted	$	0.20	$	0.22


	For the nine month periods Ended September 30,
	2018		2017
Basic EPS:
Net income	$	4,051,000	$	3,479,000
Average common shares outstanding		6,203,453		6,227,955

Earnings per share	$	0.65	$	0.56

Diluted EPS
Net income	$	4,051,000	$	3,479,000
Average common shares outstanding		6,203,453		6,227,955

Dilutive effect of stock options		—		—

Average diluted shares outstanding		6,203,453		6,227,955

Earnings per share, diluted	$	0.65	$	0.56