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 RSUs (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 June 30,
	2019		2018
Net income available for shareholders	$	4,597	$	4,230
Weighted average outstanding shares of common stock		3,901		3,816
Dilutive effect of stock options		175		177
Dilutive effect of non-vested shares		10		13
Fully diluted shares		4,086		4,006

Basic	$	1.18	$	1.11
Diluted	$	1.13	$	1.06

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

	Three Months Ended June 30,
	2019		2018
Stock awards that were anti-dilutive		8		27
Stock awards subject to performance conditions		12		3
Total stock awards excluded from diluted EPS		20		30