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Net Income Per Common Share
 6 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Net Income Per Common Share
NET INCOME PER COMMON SHARE
Basic net income per common share is computed by dividing net income to common shareholders by the weighted average number of common shares outstanding during the period, without considering any dilutive items.  Diluted net income per common share is computed by dividing net income to common shareholders by the weighted average number of common shares and common stock equivalents for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company’s common stock during the period.  The dividend and related accretion for the amount of the Company's Series A Preferred Stock outstanding for the respective period was deducted from net income and the discount on the redemption of Series A Preferred Stock was added to net income in computing net income to common shareholders.  Common stock equivalents arise from the assumed conversion of outstanding stock options and the outstanding warrant to purchase common stock.  Shares owned by the Bank’s ESOP that have not been allocated are not considered to be outstanding for the purpose of computing basic and diluted net income per common share. At March 31, 2014 and 2013, there were 189,881 and 227,154 shares, respectively, that had not been allocated under the Bank’s ESOP.








 
Information regarding the calculation of basic and diluted net income per common share for the three and six months ended March 31, 2014 and 2013 is as follows (dollars in thousands, except per share amounts):
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2014

 
2013

 
2014

 
2013

 
(In thousands, except for per share data)
Basic net income per common share computation
 
 
 
 
 
 
 
Numerator – net income
$
1,159

 
$
1,278

 
$
2,770

 
$
2,986

Preferred stock dividends
—

 
(207
)
 
(136
)
 
(408
)
Preferred stock discount accretion
—

 
(126
)
 
(70
)
 
(189
)
Discount on redemption of preferred stock
—

 
255

 
—

 
255

Net income to common shareholders
$
1,159

 
$
1,200

 
$
2,564

 
$
2,644

 
 
 
 
 
 
 
 
Denominator – weighted average
common shares outstanding
6,856,633

 
6,815,782

 
6,855,142

 
6,815,782

 
 
 
 
 
 
 
 
Basic net income per common share
$
0.17

 
$
0.18

 
$
0.37

 
$
0.39

 
 
 
 
 
 
 
 
Diluted net income per common share computation
 
 
 
 
 

 
 

Numerator – net income
$
1,159

 
$
1,278

 
$
2,770

 
$
2,986

Preferred stock dividends
—

 
(207
)
 
(136
)
 
(408
)
Preferred stock discount accretion
—

 
(126
)
 
(70
)
 
(189
)
Discount on redemption of preferred stock
—

 
255

 
—

 
255

Net income to common shareholders
$
1,159

 
$
1,200

 
$
2,564

 
$
2,644

 
 
 
 
 
 
 
 
Denominator – weighted average
common shares outstanding
6,856,633

 
6,815,782

 
6,855,142

 
6,815,782

Effect of dilutive stock options (1)
40,149

 
15,538

 
34,815

 
10,324

Effect of dilutive stock warrant
137,197

 
58,184

 
115,920

 
28,773

Weighted average common shares
and common stock equivalents
7,033,979

 
6,889,504

 
7,005,877

 
6,854,879

 
 
 
 
 
 
 
 
Diluted net income per common share
$
0.16

 
$
0.17

 
$
0.37

 
$
0.39


____________________________________________
(1) For the three and six months ended March 31, 2014, average options to purchase 125,198 and 166,390 shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per common share because their effect would have been anti-dilutive. For the three and six months ended March 31, 2013, options to purchase 166,390 and 168,455 shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per common share because their effect would have been anti-dilutive.