NOTE 13

Earnings Per Share

Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Corporation’s Stock Incentive Plan and the weighted-average number of common shares outstanding during the reporting period.

Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method, as well as shares of restricted stock.

The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):


	Year Ended
	May 31,
	2017		2016
Net income	$	5	$	1,678

Weighted average share outstanding:
Basic		8,391,244		8,391,244
Common stock equivalents—treasury stock method		121,130		—

Diluted		8,512,374		8,391,244
Net income per share:
Basic	$	.00	$	.20

Diluted	$	.00	$	.20

For fiscal 2017 and fiscal 2016, there were 57,994 and 13,914 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share, respectively.