Earnings Per Share

6 Months Ended

Sep. 30, 2016

4.	EARNINGS PER SHARE

Basic earnings per share ("EPS") is computed by dividing net income or loss applicable to common stock by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Diluted EPS is computed by dividing net income or loss applicable to common stock 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 exercise of outstanding stock options. Shares owned by the Company's ESOP that have not been allocated are not considered to be outstanding for the purpose of computing basic and diluted EPS. As of September 30, 2016 and 2015, there were 49,266 and 73,899 shares, respectively, which had not been allocated under the Company's ESOP. For the three and six months ended September 30, 2016, stock options for 59,000 shares of common stock were excluded in computing diluted EPS because they were antidilutive. For the three and six months ended September 30, 2015, stock options for 220,000 and 223,000 shares, respectively, of common stock were excluded in computing diluted EPS because they were antidilutive.

The following table presents a reconciliation of the components used to compute basic and diluted EPS for the periods indicated:

	Three Months Ended September 30,				Six Months Ended September 30,
	2016		2015		2016		2015
Basic EPS computation:
Numerator-net income	$	1,680,000	$	1,652,000	$	3,377,000	$	3,247,000
Denominator-weighted average common shares outstanding		22,474,019		22,449,386		22,470,957		22,441,898
Basic EPS	$	0.07	$	0.07	$	0.15	$	0.14
Diluted EPS computation:
Numerator-net income	$	1,680,000	$	1,652,000	$	3,377,000	$	3,247,000
Denominator-weighted average common shares outstanding		22,474,019		22,449,386		22,470,957		22,441,898
Effect of dilutive stock options		56,312		40,965		51,587		41,813
Weighted average common shares and common stock equivalents		22,530,331		22,490,351		22,522,544		22,483,711
Diluted EPS	$	0.07	$	0.07	$	0.15	$	0.14