EARNINGS PER SHARE

9 Months Ended

Dec. 31, 2016

4.	EARNINGS PER SHARE

Basic earnings per share ("EPS") is computed by dividing net income 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 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 December 31, 2016 and 2015, there were 24,633 and 49,266 shares, respectively, which had not been allocated under the Company's ESOP. For both the three and nine months ended December 31, 2016, stock options for 59,000 shares of common stock were excluded in computing diluted EPS because they were antidilutive. For the three and nine months ended December 31, 2015, stock options for 215,000 and 221,000 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 December 31,				Nine Months Ended December 31,
	2016		2015		2016		2015
Basic EPS computation:
Numerator-net income	$	1,993,000	$	1,706,000	$	5,370,000	$	4,953,000
Denominator-weighted average common shares outstanding		22,490,433		22,455,543		22,477,473		22,446,463
Basic EPS	$	0.09	$	0.08	$	0.24	$	0.22
Diluted EPS computation:
Numerator-net income	$	1,993,000	$	1,706,000	$	5,370,000	$	4,953,000
Denominator-weighted average common shares outstanding		22,490,433		22,455,543		22,477,473		22,446,463
Effect of dilutive stock options		73,279		50,798		60,190		45,083
Weighted average common shares and common stock equivalents		22,563,712		22,506,341		22,537,663		22,491,546
Diluted EPS	$	0.09	$	0.08	$	0.24	$	0.22