Note 2 - Common Stock Outstanding and Earnings Per Share

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE

2.

COMMON STOCK OUTSTANDING AND EARNINGS PER SHARE

On

May 10, 2017,

the Company announced the closing of its underwritten public offering, at the public offering price of

$10.50

per share. The total number of shares of common stock sold by the Company was

2,738,096.

Net proceeds raised in the offering, after underwriting discounts and expenses of the offering, were

$26.8

million.

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

and

nine

months ended

September 30, 2018

and

2017.

	For the Three Months Ended				For the Nine Months Ended
(Amounts in thousands, except per share information)	September 30,				September 30,
Earnings Per Share	2018		2017		2018		2017
Numerators:
Net income	$	4,032	$	2,876	$	10,891	$	7,337
Denominators:
Weighted average number of common shares outstanding - basic (1)		16,252		16,191		16,242		14,884
Effect of potentially dilutive common shares (2)		90		97		85		100
Weighted average number of common shares outstanding - diluted		16,342		16,288		16,327		14,984
Earnings per common share:
Basic	$	0.25	$	0.18	$	0.67	$	0.49
Diluted	$	0.25	$	0.18	$	0.67	$	0.49
Anti-dilutive options not included in diluted earnings per share calculation		—		70		—		74
Anti-dilutive restricted shares not included in diluted earnings per share calculation		—		42		—		43

(

1

)

Excludes unvested restricted shares because they do

not

have dividend or voting rights

(

2

)

Represents the effects of the assumed exercise of stock options and vesting of non-participating restricted shares.