EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2017

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
	March 31,
	2017		2016
	(In thousands, except share and per share data)
Net income available to common stockholders	$	278	$	80
Basic common shares:
Weighted average shares outstanding		1,799,280		1,788,005
Less: Weighted average unallocated ESOP shares		(71,769)		(79,009)
Add: Weighted average unvested restricted stock shares with non-forfeitable dividend rights		39,720		45,529
Basic weighted average common shares outstanding		1,767,231		1,754,525
Dilutive potential common shares		38,290		4,506
Diluted weighted average common shares outstanding		1,805,521		1,759,031
Basic earnings per share	$	0.16	$	0.05
Diluted earnings per share	$	0.15	$	0.05

Options to purchase 122,775 shares, representing all outstanding options, were included in the computation of diluted earnings per share for the three months ended March 31, 2017 and 2016.