Note

Earnings

Per

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share (“diluted EPS”) is computed similarly to basic earnings per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Potentially dilutive securities include common shares related to stock options and non-vested stock awards (collectively “stock awards”). Stock awards are excluded from the calculation of diluted EPS in the event that they are subject to performance conditions or are antidilutive.

The following table presents a reconciliation of the denominators used in the computation of basic and diluted earnings per share (shares in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2018		2017		2018		2017
Net income available for shareholders	$	994	$	2,353	$	5,224	$	3,870
Weighted average outstanding shares of common stock		3,850		3,764		3,833		3,754
Dilutive effect of stock options		188		171		183		180
Dilutive effect of non-vested shares		8		--		13		--
Fully diluted shares		4,046		3,935		4,029		3,934

Basic	$	0.26	$	0.63	$	1.36	$	1.03
Diluted	$	0.25	$	0.60	$	1.30	$	0.98

The following stock awards were excluded from the calculation of diluted EPS:

	Three Months Ended September 30,				Six Months Ended September 30,
	2018		2017		2018		2017
Stock awards that were anti-dilutive		1		111		24		111
Stock awards subject to performance conditions		11		-		7		-
Total stock awards excluded from diluted EPS		12		111		31		111