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 (certain unvested share-based awards and Series C preferred stock outstanding) according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow:


	December 31, 2019		December 31, 2018
Basic
Net income	$	9,601	$	4,273
Dividends on Series B preferred stock, accretion of discount and value of warrants exercised		219		62
Earnings allocated to participating securities (Series C preferred stock)		(430)		-
Net income allocated to common stockholders	$	9,390	$	4,335

Weighted average common shares outstanding including unvested share-based payment awards (1)		4,582,997		4,260,617
Less: Unvested share-based payment awards		(1,532)		-
Average shares		4,581,465		4,260,617
Basic earnings per common share	$	2.05	$	1.02

Diluted
Net earnings allocated to common stockholders	$	9,390	$	4,335
Add back: Preferred Dividends on Series B stock and accretion of discount		-		-
Net earnings allocated to common stockholders	$	9,390	$	4,335

Weighted average common shares outstanding for basic earnings per common share (1)		4,581,465		4,260,617
Add: Dilutive effects of assumed exercises of stock options		38,620		40,903
Add: Dilutive effects of assumed exercises of stock warrants		6,947		42,210
Add: Dilutive effects of unvested share-based payment awards		1,532		-
Average shares and dilutive potential common shares		4,628,564		4,343,730
Diluted earnings per common share	$	2.03	$	1.00

⁽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.


	2019	2018
Stock options	463	792