Note 4:

Earnings Per Share

Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the year.

Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income dividend by the weighted average number of commons shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and nonqualified stock options, calculated using the treasury stock method.

The following table shows the computation of basic and diluted earnings per share:

	For the three months ended June 30,				For the six months ended June 30,
	2019		2018		2019		2018
(Dollars in thousands, except per share amounts)
Numerator
Net income	$	5,126	$	6,379	$	10,242	$	12,728

Denominator
Denominator for basic earnings per common share		10,187,500		7,287,500		10,187,500		7,287,500
Dilutive effect of stock compensation (1)		5,149		-		-		-
Denominator for diluted earnings per share		10,192,649		7,287,500		10,187,500		7,287,500

Earnings per common share
Basic	$	0.50	$	0.88	$	1.00	$	1.75
Diluted	$	0.50	$	0.88	$	1.00	$	1.75

(1) Nonqualified stock options outstanding of 163,000 and restricted stock units of 130,000 as of June 30, 2019 have not been included in diluted earnings per share for the six months ended June 30, 2019, and restricted stock units of 130,000 have not been included in diluted earnings per share for the three months ended June 30, 2019 because to do so would have been antidilutive for those periods.