Earnings per Share

9 Months Ended

Sep. 30, 2020

Note 9: Earnings per Share

The following table shows the calculation of basic and diluted earnings per share and the weighted average number of shares outstanding used in computing earnings per share and the effect on the weighted average number of shares outstanding of dilutive potential common stock. Basic earnings per share amounts are computed by dividing net income (the numerator) by the weighted average number of common shares outstanding (the denominator). Diluted earnings per share amounts assume the conversion, exercise, or issuance of all potential common stock instruments, unless the effect is to reduce the loss or increase earnings per common share. Potential dilutive common stock instruments include exercisable stock options and restricted shares. For both computations, the weighted average number of the Company’s employee stock ownership plan (“ESOP”) shares not committed to be released to participant accounts are not assumed to be outstanding.

The weighted average ESOP shares excluded from the computation were 163,036 and 171,613 for the three and nine months ended September 30, 2020, respectively. The weighted average ESOP shares excluded from the computation were 147,383 and 154,376 for the three and nine months ended September 30, 2019, respectively.

For the three months ended September 30, 2020 and the three and nine months ended September 30, 2019, options on and restricted shares totaling 152,047 and 119,047, respectively, were not included in the computation of diluted EPS because their effects would

have been anti-dilutive. For the nine months ended September 30, 2020, all options on and restricted shares were not included in the computation of diluted earnings per share because their effects would have been anti-dilutive.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2020		2019		2020			2019
Net income (loss)	$	1,493	$	1,841	$	(6,648	)	$	5,056
Weighted average shares outstanding, basic		13,090,035		13,077,600		13,075,761			13,046,694
Dilutive shares:
Stock options		12,679		32,756		—			33,034
Restricted shares		35,276		22,103		—			12,639
Weighted average shares outstanding, dilutive		13,137,990		13,132,459		13,075,761			13,092,367
Basic and diluted income (loss) per share	$	0.11	$	0.14	$	(0.51	)	$	0.39