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. Common stock equivalents arise from the assumed conversion of outstanding stock options 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, 2019 all shares had been allocated under the Bank's ESOP. At March 31, 2018 there were 49,019 shares 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, 2019 and 2018 is as follows (dollars in thousands, except per share amounts):



	Three Months Ended March 31,				Six Months Ended March 31,
	2019		2018		2019		2018
Basic net income per common share computation
Numerator – net income	$	6,114	$	4,269	$	11,729	$	7,883

Denominator – weighted average common shares outstanding	8,310,074		7,328,127		8,301,550		7,320,243

Basic net income per common share	$	0.74	$	0.58	$	1.41	$	1.08

Diluted net income per common share computation
Numerator – net income	$	6,114	$	4,269	$	11,729	$	7,883

Denominator – weighted average common shares outstanding	8,310,074		7,328,127		8,301,550		7,320,243
Effect of dilutive stock options (1)	154,576		183,931		159,588		189,849
Weighted average common shares outstanding - assuming dilution	8,464,650		7,512,058		8,461,138		7,510,092

Diluted net income per common share	$	0.72	$	0.57	$	1.39	$	1.05

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(1) For the three and six months ended March 31, 2019, average options to purchase 102,150 and 102,504 shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per share because their effect would have been anti-dilutive. For the three and six months ended March 31, 2018, average options to purchase 58,000 and 58,063 shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per share because their effect would have been anti-dilutive.