NOTE 22 – EARNINGS PER COMMON SHARE

The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities (unvested share-based awards) according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow:


	December 31, 2018		December 31, 2017
Basic
Net income	$	4,273	$	1,346
Dividends on Series B preferred stock, accretion of discount and value of warrants exercised		62		(666)
Net income allocated to common stockholders	$	4,335	$	680

Weighted average common shares outstanding including unvested share-based payment awards (1)		4,260,617		3,259,662
Less: Unvested share-based payment awards		-		-
Average shares		4,260,617		3,259,662
Basic earnings per common share	$	1.02	$	0.21

Diluted
Net earnings allocated to common stockholders	$	4,335	$	680
Add back: Preferred Dividends on Series B stock and accretion of discount		-		-
Net earnings allocated to common stockholders	$	4,335	$	680

Weighted average common shares outstanding for basic earnings per common share (1)		4,260,617		3,259,662
Add: Dilutive effects of assumed exercises of stock options		40,903		39,361
Add: Dilutive effects of assumed exercises of stock warrants		42,210		207,586
Average shares and dilutive potential common shares		4,343,730		3,506,609
Diluted earnings per common share	$	1.00	$	0.19

⁽¹⁾

Adjusted for 1-for-5.5 reverse stock split on August 20, 2018.

The following potential common shares were anti-dilutive and not considered in computing diluted earnings per common share.


	2018	2017
Stock options	792	981