Earnings per Share

12 Months Ended

Dec. 31, 2022

Note 15 – Earnings per Share

Earnings per share was calculated for the years ended December 31, 2022 and 2021, respectively. Basic earnings per share is based upon the weighted average number of common shares outstanding, exclusive of unearned shares held by the ESOP, RRP and EIP. Diluted earnings per share is based upon the weighted average number of common shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Stock options are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent they would be dilutive and computed using the treasury stock method.

The calculated basic and diluted earnings per share are as follows:


	Years Ended December 31,
	2022		2021
Numerator – net income	$	5,708,000	$	6,187,000
Denominator:
Basic weighted average shares outstanding		5,879,438		5,885,005
Increase in weighted average shares outstanding due to:
Stock options		-		2,859
Diluted weighted average shares outstanding		5,879,438		5,887,864

Earnings per share:
Basic	$	0.97	$	1.05
Diluted	$	0.97	$	1.05

⁽¹⁾Stock options to purchase 64,548 shares under the Stock Option Plan and 20,000 shares under the EIP at $14.38 were outstanding during 2022, but were not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive.