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Net Income Per Common Share
 6 Months Ended
Mar. 31, 2015
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, 2015 and 2014, there were 152,869 and 189,881 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, 2015 and 2014 is as follows (dollars in thousands, except per share amounts):
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2015

 
2014

 
2015

 
2014

Basic net income per common share computation
 
 
 
 
 
 
 
Numerator – net income
$
1,451

 
$
1,159

 
$
3,178

 
$
2,770

Preferred stock dividends
—

 
—

 
—

 
(136
)
Preferred stock discount accretion
—

 
—

 
—

 
(70
)
Net income to common shareholders
$
1,451

 
$
1,159

 
$
3,178

 
$
2,564

 
 
 
 
 
 
 
 
Denominator – weighted average
common shares outstanding
6,898,192

 
6,856,633

 
6,895,038

 
6,855,142

 
 
 
 
 
 
 
 
Basic net income per common share
$
0.21

 
$
0.17

 
$
0.46

 
$
0.37

 
 
 
 
 
 
 
 
Diluted net income per common share computation
 
 
 
 
 

 
 

Numerator – net income
$
1,451

 
$
1,159

 
$
3,178

 
$
2,770

Preferred stock dividends
—

 
—

 
—

 
(136
)
Preferred stock discount accretion
—

 
—

 
—

 
(70
)
Net income to common shareholders
$
1,451

 
$
1,159

 
$
3,178

 
$
2,564

 
 
 
 
 
 
 
 
Denominator – weighted average
common shares outstanding
6,898,192

 
6,856,633

 
6,895,038

 
6,855,142

Effect of dilutive stock options (1)
36,730

 
40,149

 
36,775

 
34,815

Effect of dilutive stock warrant
136,870

 
137,197

 
135,808

 
115,920

Weighted average common shares
and common stock equivalents
7,071,792

 
7,033,979

 
7,067,621

 
7,005,877

 
 
 
 
 
 
 
 
Diluted net income per common share
$
0.21

 
$
0.16

 
$
0.45

 
$
0.37


____________________________________________
(1) For both the three and six months ended March 31, 2015, average options to purchase 122,000 shares of common stock, 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, 2014, average options to purchase 125,198 and 131,489shares 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.