(Loss) Earnings Per Share

9 Months Ended

Sep. 30, 2024

Per the provisions of FASB ASC 260, Earnings Per Share, nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of the Company’s nonvested restricted stock awards qualify as participating securities.

Net income is allocated between the common stock and participating securities pursuant to the two-class method, based on their rights to receive dividends, participate in earnings, or absorb losses. Basic earnings per common share is computed by dividing net earnings available to common shareholders by the weighted-average number of common shares outstanding during the period, excluding participating nonvested restricted shares.

The following table presents a reconciliation of the components used to compute basic and diluted (loss) earnings per share for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(Dollars in thousands, except per share data)
Net (loss) income	$	(608)	$	1,501	$	(128)	$	5,111
Less: Earnings allocated to participating securities	—		(4)		—		(15)
(Loss) earnings allocated to common shareholders	$	(608)	$	1,497	$	(128)	$	5,096

Basic weighted average common shares outstanding	9,190,146		9,127,568		9,171,579		9,117,554
Dilutive stock options	—		13,991		—		23,069
Dilutive restricted stock grants	—		8,500		—		6,086
Diluted weighted average common shares outstanding	9,190,146		9,150,059		9,171,579		9,146,709

Basic (loss) earnings per share	$	(0.07)	$	0.16	$	(0.01)	$	0.56
Diluted (loss) earnings per share	$	(0.07)	$	0.16	$	(0.01)	$	0.56

Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For both the three and nine months ended September 30, 2024, there were no options to purchase shares of common stock and no restricted stock award (“RSA”) shares that were omitted from the computation of diluted (loss) earnings per share because their effect would be anti-dilutive. For the three and nine months ended September 30, 2023, there were 80,000 options to purchase shares of common stock and no RSA shares that were omitted from the computation of diluted earnings per share because their effect would be anti-dilutive.