EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 12. EARNINGS PER COMMON SHARE

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares and common stock equivalents outstanding for the period. The basic weighted average common shares and common stock equivalents are computed using the treasury stock method. The basic weighted average common shares and common stock equivalents outstanding for the period is adjusted for average unallocated employee stock ownership plan shares, average director’s deferred compensation shares and average unearned restricted stock awards. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares and common stock equivalents outstanding for the period increased for the dilutive effect of unvested stock options and stock awards. The dilutive effect of the unvested stock options and stock awards is calculated under the treasury stock method utilizing the average market value of the Company’s stock for the period.

The following table summarizes the basic and diluted earnings per common share computation for the three months ended March 31, 2015 and 2014:

	Three months ending March 31,
	2015		2014
	(Dollars in Thousands, Except Share Information)
Basic:
Net income	$	396	$	206
Weighted average common shares outstanding		15,508,969		15,508,969
Less: average unallocated employee stock ownership plan shares		(76,647)		(81,437)
Less: average director’s deferred compensation shares		(34,478)		(35,765)
Less: average unvested restricted stock awards		(274)		(548)
Weighted average common shares outstanding, as adjusted		15,397,570		15,391,219
Basic earnings per common share	$	0.03	$	0.01
Diluted:
Net income	$	396	$	206
Weighted average common shares outstanding, as adjusted (from above)		15,397,570		15,391,219
Add: dilutive effects of assumed exercise of stock options		-		-
Add: dilutive effects of full vesting of stock awards		-		-
Weighted average dilutive shares outstanding		15,397,570		15,391,219
Diluted earnings per common share	$	0.03	$	0.01

During the three months ended March 31, 2015 and 2014, all of the Company’s stock options and stock awards were antidilutive and, therefore, were excluded from the calculation of diluted earnings per common share.