Note 6 - Earnings Per Share

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 6 - Earnings per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. 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. In addition, nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings per share.

The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(In thousands, except share data)				(In thousands, except share data)
Numerator:
Net income	$	3,675	$	2,510	$	6,524	$	6,796
Denominator:
Basic weighted average common shares outstanding		9,257,252		9,854,973		9,409,754		9,930,069
Dilutive restricted stock grants		6,723		48,368		29,484		76,738
Diluted weighted average common shares outstanding		9,263,975		9,903,341		9,439,238		10,006,807
Basic earnings per share	$	0.40	$	0.25	$	0.69	$	0.68
Diluted earnings per share	$	0.40	$	0.25	$	0.69	$	0.68

Unallocated ESOP shares are not included as outstanding for either basic or diluted earnings per share calculations. As of September 30, 2020 and 2019, there were 754,301 and 794,042 shares in the ESOP that remain unallocated, respectively.

Potential dilutive shares are excluded from the computation of EPS if their effect is anti-dilutive. There were 6,723 and 5,248 restricted stock award anti-dilutive weighted-average shares for the three months ended  September 30, 2020 and 2019 respectively. There were 29,484 and 17,344 restricted stock award anti-dilutive weighted-average shares for the nine months ended September 30, 2020 and 2019 respectively.