EARNINGS PER COMMON SHARE ("EPS")

3 Months Ended

Dec. 31, 2016

EARNINGS PER COMMON SHARE (“EPS”)

Basic EPS is based on the net income divided by the weighted average number of common shares outstanding during the period. Allocated Employee Stock Ownership Plan (“ESOP”) shares are considered outstanding for EPS calculations, as they are committed to be released; unallocated ESOP shares are not considered outstanding. All ESOP shares were allocated as of December 31, 2016 and September 30, 2016. Diluted EPS shows the dilutive effect of additional common shares issuable pursuant to stock option agreements.

A reconciliation of net income and common stock share amounts used in the computation of basic and diluted EPS for the three months ended December 31, 2016 and 2015 is presented below.



Three Months Ended December 31,	2016		2015
(Dollars in Thousands, Except Share and Per Share Data)
Earnings
Net Income	$	1,244	$	4,058

Basic EPS
Weighted average common shares outstanding	8,938,339		8,245,368
LESS: weighted average nonvested shares	151,312		27,311
Weighted average common shares outstanding	8,787,027		8,218,057

Earnings Per Common Share
Basic	$	0.14	$	0.49

Diluted EPS
Weighted average common shares outstanding for basic earnings per common share	8,787,027		8,218,057
Dilutive effect of assumed exercises of stock options, net of tax benefits	82,050		66,198
Weighted average common and dilutive potential common shares outstanding	8,869,077		8,284,255

Earnings Per Common Share
Diluted	$	0.14	$	0.49

All stock options and shares under the treasury stock method were considered in computing diluted EPS for the three months ended December 31, 2016 and 2015.