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 June 30, 2019 all shares had been allocated under the Bank's ESOP. At June 30, 2018 there were 45,999 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 nine months ended June 30, 2019 and 2018 is as follows (dollars in thousands, except per share amounts):



	Three Months Ended June 30,				Nine Months Ended June 30,
	2019		2018		2019		2018
Basic net income per common share computation
Numerator – net income	$	5,956	$	4,416	$	17,685	$	12,299

Denominator – weighted average common shares outstanding	8,338,637		7,345,618		8,313,913		7,328,702

Basic net income per common share	$	0.71	$	0.60	$	2.13	$	1.68

Diluted net income per common share computation
Numerator – net income	$	5,956	$	4,416	$	17,685	$	12,299

Denominator – weighted average common shares outstanding	8,338,637		7,345,618		8,313,913		7,328,702
Effect of dilutive stock options (1)	143,723		189,539		154,299		189,745
Weighted average common shares outstanding - assuming dilution	8,482,360		7,535,157		8,468,212		7,518,447

Diluted net income per common share	$	0.70	$	0.59	$	2.09	$	1.64

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(1) For the three and nine months ended June 30, 2019, average options to purchase 102,050 and 102,353 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 months ended June 30, 2018, there were no options to purchase shares of common stock that were omitted from the computation of diluted earnings per share because their effect would be anti-dilutive. For the nine months ended June 30, 2018, average options to purchase 38,709 shares of common stock were outstanding but not included in the computation of diluted net income per share because their effect would have been anti-dilutive.