Earnings Per Common Share

9 Months Ended

Sep. 30, 2016

Earnings Per Common Share [Abstract]

Earnings Per Common Share

Note 9 – Earnings Per Common Share

Basic earnings per common share is computed by dividing net income (which has been adjusted for distributed and undistributed earnings to participating securities) by the weighted-average number of common shares outstanding for the period, reduced for average unallocated ESOP shares and average unvested restricted stock awards. Unvested share-based awards contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) at the same rate as common stockholders.  Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock awards and options) were exercised or converted to common stock, or resulted in the issuance of common stock that then shared in the Company's earnings.  Diluted earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period increased for the dilutive effect of unexercised stock options and unvested restricted stock awards. The dilutive effect of the unexercised stock options and unvested restricted stock awards is calculated under the treasury stock method utilizing the average market value of the Company's stock for the period.

Earnings per common share are summarized for the periods presented in the following table (dollars in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Net income	$	1,454	$	1,115	$	3,814	$	3,570
Weighted average number of shares outstanding, basic		2,490		2,465		2,483		2,500
Effect of potentially dilutive common shares		78		87		74		86
Weighted average number of shares outstanding, diluted		2,568		2,552		2,557		2,586
Earnings per share, basic	$	0.58	$	0.45	$	1.54	$	1.43
Earnings per share, diluted	$	0.57	$	0.44	$	1.48	$	1.38

There were no shares considered anti-dilutive for the three and nine months ended September 30, 2016 or 2015.