Note 8 - Earnings Per Share

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE

8

– 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:

	Three Months Ended March 31,
	2019			2018
Basic:
Net income	$	41,208		$	370,627
Less: Earnings allocated to participating securities		(643	)		(8,495	)
Net income allocated to common shareholders	$	40,565		$	362,132
Weighted-average common shares outstanding including participating securities		3,360,612			3,444,390
Less: Average participating securities		(49,798	)		(74,907	)
Less: Average unallocated ESOP Shares		(170,316	)		(176,102	)
Average shares		3,140,499			3,193,381
Basic earnings per common share	$	0.01		$	0.11
Diluted:
Net income allocated to common shareholders	$	40,565		$	362,132
Weighted-average common shares outstanding for basic earnings per common share		3,140,499			3,193,381
Add: Dilutive effects of assumed exercises of stock options		4,712			13,745
Weighted average shares and dilutive potential common shares		3,145,210			3,207,126
Diluted earnings per common share	$	0.01		$	0.11

Our restricted stock awards are participating securities since they participate in common stock dividends.

Stock options for

4,000

shares were

not

considered in computing diluted earnings per common share for the

three

months ended

March 31, 2019

because they were antidilutive. There were

no

stock options considered antidilutive for the

three

months ended

March 31, 2018.