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Net Income Per Common Share
 3 Months Ended
Dec. 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 December 31, 2014 and 2013, there were 156,020 and 191,916 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 months ended December 31, 2014 and 2013 is as follows (dollars in thousands, except per share amounts):
 
Three Months Ended
December 31,
 
2014

 
2013

 
(In thousands, except for per share data)
Basic net income per common share computation
 
 
 
Numerator – net income
$
1,727

 
$
1,611

Preferred stock dividends
—

 
(136
)
Preferred stock discount accretion
—

 
(70
)
Net income to common shareholders
$
1,727

 
$
1,405

 
 
 
 
Denominator – weighted average
common shares outstanding
6,891,952

 
6,853,683

 
 
 
 
Basic net income per common share
$
0.25

 
$
0.20

 
 
 
 
Diluted net income per common share computation
 
 
 
Numerator – net income
$
1,727

 
$
1,611

Preferred stock dividends
—

 
(136
)
Preferred stock discount accretion
—

 
(70
)
Net income to common shareholders
$
1,727

 
$
1,405

 
 
 
 
Denominator – weighted average
common shares outstanding
6,891,952

 
6,853,683

Effect of dilutive stock options (1)
36,819

 
29,596

Effect of dilutive stock warrant
134,769

 
95,106

Weighted average common shares
and common stock equivalents
7,063,540

 
6,978,385

 
 
 
 
Diluted net income per common share
$
0.24

 
$
0.20


____________________________________________
(1) For the three months ended December 31, 2014 and 2013, average options to purchase 122,000 and 125,198 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.