EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 12 - EARNINGS PER SHARE

The Company computes earnings per share using the two-class method, which is an earnings allocation method for computing earnings per share that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Basic earnings per share are computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Unvested share-based awards containing non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For earnings per share calculations, the ESOP shares committed to be released are included as outstanding shares for both basic and diluted earnings per share.

The following table presents a reconciliation of the components used to compute basic and diluted earnings per share at or for the three and six months ended June 30, 2022 and 2021:

	At or For the Three Months Ended June 30,				At or For the Six Months Ended June 30,
Numerator (in thousands):	2022		2021		2022		2021
Net income	$	6,699	$	8,549	$	13,569	$	20,432
Dividends and undistributed earnings allocated to participating securities		(138)		(128)		(265)		(298)
Net income available to common shareholders	$	6,561	$	8,421	$	13,304	$	20,134
Denominator (shown as actual):
Basic weighted average common shares outstanding		7,776,939		8,282,980		7,899,522		8,308,115
Dilutive shares		119,271		267,449		131,214		252,852
Diluted weighted average common shares outstanding		7,896,210		8,550,429		8,030,736		8,560,967
Basic earnings per share	$	0.84	$	1.02	$	1.68	$	2.42
Diluted earnings per share	$	0.83	$	0.98	$	1.66	$	2.35
Potentially dilutive weighted average share options that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive		68,008		—		52,364		—