NOTE 3 – Earnings Per Share

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.

The following table presents the earnings per share calculations for the three months ended March 31:


	March 31,
	2020		2019
Net income	$	407	$	249
Basic potential common shares
Weighted average shares outstanding		7,704,875		7,850,247
Weighted average unallocated Employee Stock Ownership Plan Shares		(607,924)		(284,085)
Basic weighted average shares outstanding		7,096,951		7,566,162
Dilutive potential common shares		—		258
Dilutive weighted average shares outstanding		7,096,951		7,566,420

Basic earnings per share	$	0.06	$	0.03
Diluted earnings per share	$	0.06	$	0.03