Note 21 - Earnings Per Share

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE

2

1

–

EARNINGS

PER SHARE

The

two

-class method is used in the calculation of basic and diluted earnings per share. Under the

two

-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow:

	Year Ended December 31,
	2018			2017
Basic:
Net income	$	1,073,514		$	360,591
Less: Earnings allocated to participating securities		(24,642	)		(543	)
Net income allocated to common shareholders	$	1,048,872		$	360,048
Weighted-average common shares outstanding including participating securities		3,410,670			3,443,695
Less: Average participating securities		(70,988	)		(4,915	)
Less: Average unallocated ESOP Shares		(176,102	)		(181,887	)
Average shares		3,163,581			3,256,893
Basic earnings per common share	$	0.33		$	0.11
Diluted:
Net income allocated to common shareholders	$	1,048,872		$	360,048
Weighted-average common shares outstanding for basic earnings per common share		3,163,581			3,256,893
Add: Dilutive effects of assumed exercises of stock options		8,076			8,269
Weighted average shares and dilutive potential common shares		3,171,655			3,265,162
Diluted earnings per common share	$	0.33		$	0.11

Participating securities are restricted stock awards since they participate in common stock dividends. Stock options for

4,000

and

178,650

shares of common stock were

not

considered in computing diluted earnings per common share for

2018

and

2017,

respectively, because they were antidilutive.