Note 8 - Income Per Share

6 Months Ended

Jun. 30, 2016

Note 8: Income per share

The Company is required to present basic income per share and diluted income per share in its consolidated statements of operations. Basic income per share amounts are computed by dividing net income by the weighted average number of common shares outstanding. Diluted income per share reflects additional common shares that would have been outstanding if potentially dilutive common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding restricted stocks and would be determined using the treasury stock method. The Company is also required to provide a reconciliation of the numerator and denominator used in the computation of both basic and diluted income per share.

PATRIOT NATIONAL BANCORP

, INC. AND SUBSIDIARY

Notes to consolidated financial statements (Unaudited)

The Company had no outstanding stock options as of June 30, 2016 or December 31, 2015. The following is information about the computation of income per share for the three and six months ended June 30, 2016 and 2015:

Three months ended June 30, 2016	Net Income		Weighted Average Common Shares Outstanding	Amount

Basic Income Per Share	$	613,863	3,957,012	$	0.16
Effect of Dilutive Securities
Non-vested Restricted Stock Grants		N/A	1,073		N/A

Diluted Income Per Share		613,863	3,958,085	$	0.16

Three months Ended June 30, 2015	Net Income		Weighted Average Common Shares Outstanding	Amount

Basic Income Per Share	$	689,000	3,872,073	$	0.18
Effect of Dilutive Securities
Non-vested Restricted Stock Grants		N/A	21,093		N/A

Diluted Income Per Share	$	689,000	3,893,166	$	0.18

Six months ended June 30, 2016	Net Income		Weighted Average Common Shares Outstanding		Amount

Basic Earnings Per Share	$	1,267,260		3,956,609	$	0.32
Effect of Dilutive Securities
Non-vested Restricted Stock Grants		N/A		33,366		N/A

Diluted Earnings Per Share		1,267,260		3,989,975	$	0.32

Six months Ended June 30, 2015	Net Income		Weighted Average Common Shares Outstanding		Amount

Basic Income Per Share	$	978,000		3,871,960	$	0.25
Effect of Dilutive Securities
Non-vested Restricted Stock Grants		N/A		20,992		N/A

Diluted Income Per Share	$	978,000		3,892,952	$	0.25