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Note 3 - Earnings Per Share of Common Stock
 6 Months Ended
Mar. 31, 2012
Earnings Per Share [Text Block]
3.          Earnings Per Share of Common Stock

Basic net income per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income by the assumed weighted average number of common shares outstanding.

We are required to present earnings per share, or EPS, utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities.

Basic and diluted earnings per share computations for the Company’s reported net income attributable to common stockholders are as follows:

 
   
For the three months ended
 
For the six months ended
   
March 31,
2012
   
March 31,
2011
 
March 31,
2012
 
March 31,
2011
   
(Amounts in thousands except per share data)
Net income
  $ 442     $ 286     $ 903     $ 675  
Less: Net income attributable to nonvested common stock
    8       4       15       9  
Net income attributable to common stockholders
  $ 434     $ 282     $ 888     $ 666  
                                 
Weighted average total shares outstanding – basic
    3,425       3,492       3,417       3,504  
Less: weighted average non-vested shares outstanding
    62       55       57       49  
Weighted average number of common shares outstanding – basic
    3,363       3,437       3,360       3,455  
Potential common shares from non-vested stock awards and the assumed exercise of stock options
    38       34       38       36  
Weighted average common shares outstanding – diluted
    3,401       3,471       3,398       3,491  
                                 
Net income per share – basic
  $ 0.13     $ 0.08     $ 0.26     $ 0.19  
Net income per share – diluted
  $ 0.13     $ 0.08     $ 0.26     $ 0.19  

All anti-dilutive securities, including stock options, are excluded from the diluted income per share computation. For the three and six months ended March 31, 2012, 195,000 and 200,000 options, respectively, were excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive.