Earnings Per Share

3 Months Ended

Mar. 31, 2021

NOTE 14 – EARNINGS PER SHARE (EPS)

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding, adjusted for weighted average unallocated ESOP shares, during the applicable period, excluding outstanding participating securities. Participating securities include

non-vested

restricted stock awards and restricted stock units, though no actual shares of common stock related to restricted stock units are issued until the settlement of such units, to the extent holders of these securities receive

non-forfeitable

dividends or dividend equivalents at the same rate as holders of the Company’s common stock. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. Antidilutive options are disregarded in earnings per share calculations.

Earnings per common share for the three months ended March 31, 2021 and the three months ended March 31, 2020 are presented in the following table.


	Three months ended March 31,
	2021		2020
	(dollars in thousands, except per share amounts)
Net income	$	521	$	287
Basic weighted average common shares outstanding:
Weighted average shares outstanding		4,838,344		4,876,677
Less: Weighted average unallocated ESOP shares		160,599		172,017
Less: Unvested restricted stock awards		89,057		—

Total basic weighted average common shares outstanding		4,588,688		4,704,660
Effective dilutive potential common shares		108,654		871

Total diluted weighted average shares outstanding		4,697,342		4,705,531

Basic earnings per share	$	0.11	$	0.06

Diluted earnings per share	$	0.11	$	0.06