Earnings Per Share

3 Months Ended

Mar. 31, 2020

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding during the period. For purposes of calculating basic earnings per share, weighted average common shares outstanding excludes unallocated employee stock ownership plan (“ESOP”) shares that have not been committed for release and unvested restricted stock.

Diluted earnings per share is computed using the same method as basic earnings per share, but reflects the potential dilution that could occur if stock options and unvested shares of restricted stock were exercised and converted into common stock. These potentially dilutive shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method. When applying the treasury stock method we added the assumed proceeds from option exercises and the average unamortized compensation costs related to unvested shares of restricted stock and stock options. We then divided this sum by our average stock price for the period to calculate assumed shares repurchased. The excess of the number of shares issuable over the number of shares assumed to be repurchased is added to basic weighted average common shares to calculate diluted earnings per share.

The following is a summary of the Company’s earnings per share calculations and reconciliation of basic to diluted earnings per share for the periods indicated (dollars in thousands, except per share data):



	Three Months Ended March 31,
	2020		2019
Net income available to common stockholders	$	4,551	$	8,771

Weighted average shares outstanding-basic	46,791,768		46,940,903
Effect of non-vested restricted stock and stock options outstanding	191,698		347,257
Weighted average shares outstanding-diluted	46,983,466		47,288,160
Earnings per share-basic	$	0.10	$	0.19
Earnings per share-diluted	$	0.10	$	0.19
Anti-dilutive shares	1,001,828		1,075,747