NOTE

EARNINGS PER SHARE

Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period, excluding unvested restricted stock awards which do not have voting rights or share in dividends. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that subsequently shared in the earnings of the Holding Company. The computation of diluted earnings per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on earnings per share.

The following is a computation of basic and diluted earnings per share for the

three

months ended

March

31,

2017

and

2016.

	For the Three Months Ended
(Amounts in thousands, except per share information)	March 31,
Earnings Per Share	2017		2016
Numerators:
Net income (loss)	$	2,252	$	(960	)
Denominators:
Weighted average number of common shares outstanding - basic		13,416		13,360
Effect of potentially dilutive common shares (1)		105		—
Weighted average number of common shares outstanding - diluted		13,521		13,360
Earnings (loss) per common share:
Basic	$	0.17	$	(0.07	)
Diluted	$	0.17	$	(0.07	)
Anti-dilutive options not included in diluted earnings per share calculation		—		120,700
Anti-dilutive restricted shares not included in diluted earnings per share calculation		33,068		54,181
(1) Represents the effects of the assumed exercise of stock options and vesting of non-participating restricted shares. For periods in which a net loss is reported, there is no effect on the calculation of diluted loss per share because the conversion is anti-dilutive.