Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share

2. Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the adjusted weighted-average number of common shares outstanding during the period.  The adjusted outstanding common shares equals the gross number of common shares issued less average treasury shares, unallocated shares of the Chicopee Savings Bank Employee Stock Ownership Plan (“ESOP”), and average dilutive restricted stock awards under the 2007 Equity Incentive Plan. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued.  Potential common shares that may be issued by the Company relate to outstanding stock options and certain stock awards and are determined using the treasury stock method.

Earnings per share is computed as follows:

	Three Months Ended March
	2012			2011
Net income (in thousands)	$	397		$	43
Weighted average number of common shares issued		7,439,368			7,439,368
Less: average number of treasury shares		(1,897,395	)		(1,453,446	)
Less: average number of unallocated ESOP shares		(416,605	)		(446,363	)
Less: average number of dilutive restricted stock awards		(55,249	)		(117,875	)
Adjusted weighted average number of common
shares outstanding		5,070,119			5,421,684
Plus: dilutive outstanding restricted stock awards		49,327			32,476
Plus: dilutive outstanding stock options		-			-
Weighted average number of diluted shares outstanding		5,119,446			5,454,160
Earnings per share:
Basic- common stock	$	0.08		$	0.01
Basic- unvested share-based payment awards	$	0.08		$	0.01
Diluted- common stock	$	0.08		$	0.01
Diluted- unvested share-based payment awards	$	0.08		$	0.01

There were 619,198 and 562,698 stock options that were not included in the calculation of diluted earnings per share for the three months ended March 31, 2012 and 2011, respectively, because their effect was anti-dilutive.