Earnings Per Common Share

9 Months Ended

Sep. 30, 2013

Earnings Per Common Share

Earnings Per Common Share

(3) Earnings Per Common Share

The Company has adopted the Earnings Per Share (“EPS”) guidance included in Accounting Standards Codification (“ASC”) 260-10. As presented below, basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that would 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 purposes of computing diluted EPS, the treasury stock method is used.

Unallocated ESOP shares are not deemed outstanding for earnings per share calculations.

Earnings per common share have been computed based on the following.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Net income available to common stockholders	$	168,000		$	244,000		$	526,000		$	532,000
Basic common shares:
Weighted average shares outstanding	1,843,319			1,910,017			1,880,981			1,908,847
Less:  Weighted average unallocated ESOP shares	(97,111		)	(105,025		)	(98,921		)	(47,909		)
Add:  Weighted average unvested restricted shares with non-forfeitable dividend rights	35,751			30,281			35,980			29,441
Basic weighted average common shares outstanding	1,781,959			1,835,273			1,818,040			1,890,379
Dilutive potential common shares	2,533			—			4,976			—
Diluted weighted average common shares outstanding	1,784,492			1,835,273			1,823,016			1,890,379
Basic earnings per share	$	0.09		$	0.13		$	0.29		$	0.28
Diluted earnings per share	$	0.09		$	0.13		$	0.29		$	0.28

Options to purchase 52,924 shares, representing outstanding options that were granted in 2010, 2011, 2012 and 2013, were included in the computation of diluted earnings per share for the three-month period ended September 30, 2013. Options to purchase 33,774 shares, representing outstanding options that were granted in 2010, 2011 and 2012, were included in the computation of diluted earnings per share for the nine-month period ended September 30, 2013. Options to purchase 19,150 shares that were granted in 2013 were not included in the computation of diluted earnings per share for the nine-month period ended September 30, 2013, because to do so would have been antidilutive. Options to purchase 40,681 shares, representing all outstanding options, were included in the computation of diluted earnings per share for the three and nine-month periods ended September 30, 2012. However, the result of the computation for the three and nine- months ended September 30, 2012 was that there were no dilutive potential common shares.