EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

Earnings per share:

EARNINGS PER SHARE

NOTE 15 – EARNINGS PER SHARE

For the three months ended March 31, 2024, the Company had voting common stock, restricted stock awards, and non-voting common stock that were all eligible to participate in dividends equal to the voting common stock dividends on a per share basis. For the three months ended March 31, 2023, the Company had voting common stock, restricted stock awards, and non-voting preferred stock that were all eligible to participate in dividends. Securities that participate in dividends 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:

	Three Months Ended March 31,
(dollars in thousands, except for earnings per common share amounts)	2024			2023
Net (loss) income	$	(1,539	)	$	444
Less: convertible preferred stock dividends		—			(57	)
Less: earnings allocated to participating securities		4			(1	)
Net income allocated to common shareholders	$	(1,535	)	$	386
Basic weighted average common shares outstanding - Voting		4,127			3,473
Basic weighted average common shares outstanding - Non-Voting		820			—
Diluted weighted average common shares outstanding - Voting		4,127			3,478
Diluted weighted average common shares outstanding - Non-Voting		820			—
Basic earnings per common share - Voting	$	(0.31	)	$	0.11
Basic earnings per common share - Non-Voting	$	(0.31	)		—
Diluted earnings per common share - Voting	$	(0.31	)	$	0.11
Diluted earnings per common share - Non-Voting	$	(0.31	)		—

Participating securities are restricted stock awards and preferred stock since they participate in common stock dividends. Stock options for 112,500 and 118,820 shares of common stock and warrants totaling 211,667 and 211,667 were not considered in computing diluted earnings per common share for 2024 and 2023, because they were antidilutive.