Earnings per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earnings per Share

Note 16 – Earnings per Share

Following shareholder approval received on June 29, 2023, the Company converted 820,115 shares of its Series A Preferred Stock to an equal number of shares of its newly created Non-Voting Common Stock, which was effective on July 19, 2023.

The Company has voting common stock, restricted stock awards, and non-voting common stock that are all eligible to participate in dividends equal to the voting common stock dividends on a per share basis. Securities that participate in dividends, such as the Company’s restricted stock awards and non-voting common stock, are considered “participating securities.” The Company calculates net income available to voting common shareholders using the two-class method required for capital structures that include participating securities.

In applying the two-class method, basic net income per share was calculated by dividing net income (less any dividends on participating securities) by the weighted average number of shares of common stock and participating securities outstanding for the period. Diluted earnings per share may include the additional effect of other securities, if dilutive. Potentially dilutive common stock equivalents consist of employee stock options and warrants. Unallocated common shares held by the ESOP are not included in the weighted average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be released to plan participants. The factors are used in the earnings per share computation follow:

	Year Ended December 31,
(dollars in thousands, except for earnings per common share amounts)	2023			2022
Net (loss) income	$	(3,402	)	$	1,330
Less: convertible preferred stock dividends		115			—
Less: earnings allocated to participating securities		(11	)		(11	)
Net income allocated to common shareholders	$	(3,506	)	$	1,319
Basic weighted average common shares outstanding - Voting		3,654			2,359
Basic weighted average common shares outstanding - Non-Voting		373			—
Diluted weighted average common shares outstanding - Voting		3,656			2,371
Diluted weighted average common shares outstanding - Non-Voting		373			—
Basic earnings per common share - Voting	($	0.88	)	$	0.56
Basic earnings per common share - Non-Voting	($	0.88	)		—
Diluted earnings per common share - Voting	($	0.88	)	$	0.56
Diluted earnings per common share - Non-Voting	($	0.88	)		—

Participating securities are restricted stock awards and preferred stock since they participate in common stock dividends. Stock options for 112,500 and 118,000 shares of common stock and warrants totaling 211,667 and 100,315 were not considered in computing diluted earnings per common share for 2023 and 2022, because they were antidilutive.