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 months ended March 31, 2020 and 2019.



	Three Months Ended
	March 31,
	2020		2019
	(In thousands, except share data)
Numerator:
Net income	$	873	$	2,207

Denominator:
Basic weighted average common shares outstanding	9,624,727		9,973,125
Dilutive restricted stock grants	51,650		77,143
Diluted weighted average common shares outstanding	9,676,377		10,050,268

Basic earnings per share	$	0.09	$	0.22

Diluted earnings per share	$	0.09	$	0.22

Unallocated ESOP shares are not included as outstanding for either basic or diluted earnings per share calculations. As of March 31, 2020 and 2019, there were 780,785 and 833,782 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 16,256 and zero restricted stock award anti-dilutive weighted-average shares for the three months ended March 31, 2020 and 2019, respectively.